Renters’ Rights Bill must not disadvantage landlords – Propertymark

With the Second Reading of the Renters’ Rights Bill taking place tomorrow (Wednesday 9 October), Propertymark is calling on MPs to consider the vital role landlords and letting agents play in the private rented sector (PRS).

The organisation is urging MPs to strengthen the Bill to ensure it maintains choice, flexibility and keeps costs down for both tenants and landlords.

The Bill, introduced to Parliament on 11 September 2024, seeks to ban Section 21 ‘no-fault’ evictions and implement stricter requirements for property standards.

While Propertymark supports measures to improve tenant protections, it expresses concerns that removing Section 21 without adequate court resources could harm the PRS and discourage landlords from reinvesting or entering the market.

‘The use of anti-landlord rhetoric’

The organisation’s head of policy and campaigns, Timothy Douglas, said: “Currently, amongst letting agents there is a concern about the use of anti-landlord rhetoric and how this is leading landlords to take their properties off the market or leave the sector altogether.

“Letting agents strongly refute the suggestion that landlord greed is responsible for so called ‘bidding wars’.

“The lack of supply of homes to rent often leads tenants, who are desperate for somewhere to live, to offer increased rent.”

He added: “The Bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing their homes from the private rented sector, frequently moving them to short term lets.

“The impact this could have on tenants it is trying to protect can’t be underestimated.”

The proposed reforms

The UK government claims that renters have been disadvantaged for too long and that the proposed reforms will provide greater security for 11 million tenants.

However, data from the English Housing Survey reveals that 71% of private renters find it easy to pay their rent and 95% are not in arrears.

Similar figures are seen in the social rented sector, with 73% of tenants finding it easy to pay rent and 85% not being in arrears.

Also, most private renters who moved within the past year (63%, or 424,000 households) chose to end their tenancy due to their wish to relocate.

Negative consequences of removing Section 21

Propertymark says it supports measures to enhance tenant protections and standards but fears the potential negative consequences of removing Section 21 without improving the court system.

This change, it says, could undermine many of the protections that have contributed to the growth of the PRS since the late 1980s.

Banning Section 21 would also discourage landlords from reinvesting – or deter new entrants into the market.

Propertymark says it is crucial to ensure an adequate supply of housing to meet the needs of a growing population.

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