Renters Reform Bill is a ‘golden opportunity’ for the PRS

Property sector leaders say the Renters’ Reform Bill is a ‘golden opportunity’ for the private rented sector (PRS)

However, they caution the government from introducing ‘piecemeal legislation’ so that landlords are not over-burdened.

The legislation is seen as the most transformative overhaul of the PRS in decades and encompasses various proposals including the abolition of Section 21 ‘no-fault’ evictions and reinforcing Section 8 evictions.

Also, the Bill will give tenants the legal right to request pet ownership in rental properties, implementing a Decent Homes Standard and mandating landlord membership in a registration scheme.

‘Renters’ Reform Bill is a golden opportunity to get these reforms right’

Neil Cobbold, the managing director of PayProp UK, said: “The Renters’ Reform Bill is a golden opportunity to get these reforms right, but credible enforcement is key.

“Property professionals have pointed to a ‘postcode lottery’ across the country when it comes to enforcing current rules, which allows rogue landlords and agents to operate.

“We urge the government to address this as we see very few proposals to ensure better enforcement.”

He added: “Anything that drives up standards can only be seen as a good thing for the PRS but the lack of reassurances and detail in these reforms risks some landlords selling up at a time when rental properties are urgently needed.”

‘Allow tenants to feel protected and landlords to feel confident’

Mr Cobbold continued: “These reforms should be delivered in such a way that they allow tenants to feel protected and landlords to feel confident that the sector is viable.

“The abolition of Section 21, which currently allows landlords to gain possession of their property without giving a reason, maybe a worry for some landlords – but it is a genuine concern for tenants.

“The strengthening of Section 8 – which allows landlords to evict on a number of grounds including anti-social behaviour, arrears and needing to sell – should offer reassurance to the legitimate concerns of landlords while affording tenants more protection than they currently have.”

Upcoming legislation on Minimum Energy Efficiency Standard (MEES)

In addition to the Renters’ Reform Bill, the PRS is also gearing up for the upcoming legislation on Minimum Energy Efficiency Standard (MEES) regulations.

While the government has yet to announce a precise implementation date, these new rules are anticipated to be enacted soon.

As part of the government’s commitment to reach Net Zero emissions by 2050, the proposed legislation aims to raise the minimum Energy Performance Certificate (EPC) rating for all PRS homes.

The current requirement of an ‘E’ rating will be elevated to a ‘C’ rating, marking a significant shift in energy efficiency standards for rental properties.

The Bill will help the PRS

Nathan Emerson, Propertymark’s chief executive, also says the Bill will help the PRS and said: “Propertymark supports the need to professionalise the industry in order to stamp out bad practice and eradicate rogue landlords.

“With nearly half of all landlords in England only owning one property, there is a concern that ongoing piecemeal legislation may add further pressure on small portfolio landlords and will be unmanageable and unenforceable.”

He added: “A considerable number of smaller-scale landlords will struggle to find the funds to improve the energy efficiency of their properties and the UK government must ensure that adequate funding is available to be able to achieve this.”

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