A gathering of industry leaders has highlighted critical concerns around the Renters’ Rights Bill, as the seismic legislation makes its way through Parliament.
Hosted by lettings tech platform Goodlord, an event held this week brought together key industry figures including NRLA chief executive, Ben Beadle, Propertymark CEO, Nathan Emerson, the British Property Federation’s director of policy, Ian Fletcher, and Lord Best, a crossbench peer focused on housing. They were joined by over 50 figures from across the industry.
One key area of worry raised by Goodlord CEO, William Reeve, was the prohibition of ‘bidding wars’. Reeve highlighted that a likely unintended consequence of such a policy would be for landlords to ‘overprice’ their properties, in the expectation that they would be negotiated down – leading to ‘horrifying’ headline numbers on rents and a less favourable environment for tenants. Reeve pointed to a similar scheme in New Zealand which was ultimately scrapped.
A range of attendees flagged ongoing fears around pressure on the courts, with Propertymark CEO Nathan Emerson raising concerns around how the existing system – which is already under pressure – will handle the rise in demand from landlords and tenants. This issue is something that will “come back to bite”, believes British Property Federation Director of Policy, Ian Fletcher.
Ben Beadle, chief executive of the NRLA, also voiced concern around how the end of payments up-front could have unintended consequences for renters on the margins; removing a lifeline for those who don’t meet referencing thresholds on paper but need to rent in the private sector.
Lord Best indicated that there was appetite in the House of Lords to address key concerns through amendments, such as the issues around fixed-term tenancies and the student lets market – an area the sector has long highlighted as in need of additional nuance. He also stated his belief that the legislation would not spark a so-called landlord exodus, despite some landlords likely taking this moment to exit the sector, and instead that more supply would move in the direction of landlords with larger portfolios.
The speakers also underscored the supply and demand realities challenging the sector and the pressing need to rapidly build more rental homes.
However, attendees also praised the upgrades being made to the Decent Homes Standard, the additional flexibility being afforded to tenants, and expressed hope that a well-run Ombudsman will push unscrupulous landlords out of the market.
Goodlord CEO Reeve also emphasized that a more detailed property register, incorporating elements like the Unique Property Reference Number (UPRN), would streamline compliance and improve transparency. He noted that such a system would benefit both landlords and tenants by facilitating the tracking of key safety and legal information.
The Renters’ Rights Bill is due to have its second reading in the House of Lords on 4 February.
Read the orginal article: https://propertyindustryeye.com/industry-leaders-gather-to-discuss-impact-of-renters-rights-bill/
