This is what’s wrong with Renters Rights Bill – Propertymark speaks out
As the Renters Rights Bill prepares for its second reading in the House of Commons next week, Propertymark has taken proactive steps to address its concerns regarding the legislation. Recently, officials from the Ministry of Housing, Communities, and Local Government (MHCLG) met with Propertymark’s regional executives to discuss feedback from its members, which includes practicing letting agents and property professionals across the UK.
A Call for Balance
In a statement, Propertymark underscored the importance of achieving a balanced approach between the rights of landlords and tenants. While the organisation acknowledges the need to address poor practices in the private rented sector (PRS), it warns that an overemphasis on these issues could push responsible landlords out of the market.
“A disproportionate focus on the minority of poor practices in the PRS is leading good landlords to take their properties off the market or leave the sector altogether,” said a spokesperson for Propertymark. This sentiment highlights a growing concern among landlords that increasing regulations might not only limit their ability to operate but also reduce the availability of rental properties, ultimately harming tenants in need of housing.
Bidding Wars and Market Dynamics
One of the most contentious points raised by Propertymark relates to the perception of “landlord greed” fuelling bidding wars among tenants. The organisation argues that the root cause of these bidding wars is not greed but rather a severe lack of supply in the rental market. As demand far outstrips available homes, desperate tenants are forced to offer higher rents.
Propertymark warns that the current iteration of the bill may exacerbate this situation. “The bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing homes from the PRS, frequently changing them to become short-term lets,” they stated.
Court System Concerns
Another pressing concern for Propertymark is the capacity of the court system to handle the increased caseload anticipated from the removal of Section 21 evictions. As it stands, landlords often face lengthy delays when seeking possession of their properties, with wait times reaching up to 40 weeks in London. Propertymark calls for urgent reforms to address these delays, suggesting the digitalisation of court procedures and enhanced support for navigating the system.
“Plans to digitalise more court procedures relating to housing possession cases must move ahead as quickly as possible,” said Propertymark. The organisation believes that improved court efficiency and accessibility are crucial for restoring confidence in the housing sector.
The Issue of Fixed-Term Tenancies
Propertymark is also urging the government to conduct a thorough impact assessment of the proposed removal of fixed-term tenancies. The organisation emphasises that fixed terms provide essential security for tenants while also ensuring landlords receive consistent rent payments.
“Tenants, including nurses working in hospitals for set periods and families wanting stability in their children's schooling, have expressed a clear preference for fixed-term tenancies,” Propertymark noted. They argue that eliminating these terms could inadvertently turn every tenancy into a short-term let, further driving up rents and destabilising the rental market.
Conclusion
As the Renters Rights Bill approaches a critical juncture, Propertymark’s concerns reflect the complex dynamics at play in the UK housing market. With calls for a balanced approach that recognises the rights and responsibilities of both landlords and tenants, the ongoing discussions will be pivotal in shaping the future of renting in the UK. The organisation advocates for retaining fixed-term tenants as an option and ensuring that court reforms are prioritised to protect both tenants and landlords.
As stakeholders continue to engage in dialogue, the hope is that the final legislation will foster a fairer, more stable rental market that meets the needs of all parties involved.
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