Renters’ Rights Bill sparks industry debate

Renters’ Rights Bill sparks industry debate

0:09 AM, 28th January 2025, About 2 days ago 14

Text Size

The potential ‘unintended consequences’ on the private rented sector of the Renters’ Rights Bill was at the forefront of a recent gathering of property industry leaders.

Hosted by lettings platform Goodlord, the event brought together key figures including NRLA’s chief executive Ben Beadle, Propertymark’s Nathan Emerson, and British Property Federation director of policy. Ian Fletcher.

They were joined by more than 50 figures from across the sector.

Goodlord’s chief executive William Reeve expressed his concern about the bill’s prohibition of tenant ‘bidding wars’.

He warned that ‘a likely unintended consequence’ would see landlords wanting to ‘overprice’ properties, in the expectation that they would be negotiated down.

That would result in inflated rents and a less favourable environment for tenants, he said.

He also pointed to a similar, ultimately scrapped, scheme in New Zealand.

Strain on the courts

Attendees also raised concerns about the strain the bill could place on the courts, with Nathan Emerson highlighting the existing system’s struggle to cope with increased demand.

Ian Fletcher echoed this sentiment, stating that the issue will ‘come back to bite’.

Ben Beadle voiced his concerns about the potential impact of ending upfront payments.

He argued that it would ‘have unintended consequences for renters on the margins’, affecting renters who do not meet traditional referencing criteria but rely on upfront payments to secure tenancies.

Issues for fixed-term tenancies

Lord Best, a crossbench peer focused on housing, acknowledged the House of Lords’ intention to address key concerns through amendments, such as those affecting fixed-term tenancies and student lets.

He also expressed doubt about a ‘landlord exodus’, suggesting that the legislation would likely lead to a shift towards larger landlords.

The speakers emphasised the critical need to address the housing shortage.

Decent Homes Standard

However, speakers also praised the upgraded Decent Homes Standard, and the increased flexibility afforded to tenants.

Mr Reeve highlighted the potential benefits of a detailed property register, incorporating the Unique Property Reference Number (UPRN), to streamline compliance and improve transparency for both landlords and tenants.

There was also a hope that a well-run Ombudsman will push unscrupulous landlords out of the market.

The Renters’ Rights Bill is scheduled for its second reading in the House of Lords on February 4.


Share This Article


Comments

Freda Blogs

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:22 AM, 28th January 2025, About A day ago

"Lord Best, a crossbench peer focused on housing, acknowledged the House of Lords’ intention to address key concerns through amendments, such as those affecting fixed-term tenancies and student lets.

He also expressed doubt about a ‘landlord exodus’, suggesting that the legislation would likely lead to a shift towards larger landlords."

Whilst he may be focusing on housing, it looks like:
1.he's not listening, or talking to LLs who ARE leaving the sector;
2. exercising common sense as to how long it will take the larger landlords to fill the gap leaving a supply/demand imbalance meantime; or
3. not caring about the smaller LLs.

Julian Lloyd

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:00 AM, 28th January 2025, About A day ago

The RRB is a terrible piece of legislation. It is going to cause chaos here. So many unintended consequences with unfortunate effects that will impact landlords but tenants moreso.

Marlena Topple

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:25 PM, 28th January 2025, About A day ago

If I wanted to list the myriad unintended negative consequences of this legislation then a prohibition of bidding wars would not be at the top of the list.

TheMaluka

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

14:09 PM, 28th January 2025, About A day ago

Reply to the comment left by Marlena Topple at 28/01/2025 - 12:25
I believe that the prohibition is only on bidding up, not down.

Three bedroom semi, "£1.5 million per month or lower offer"

I agree that bidding, which I have never encouraged, is the least of our worries.

Cider Drinker

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:14 PM, 28th January 2025, About A day ago

If a landlord wishes to sell at the moment, they’ll need to issue a Section 21. There are many blockers that could make a Section 21 invalid.

The Bill proposes to introduce a new mandatory ground if a landlord wishes to sell.

Cider Drinker

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:20 PM, 28th January 2025, About A day ago

The biggest issue for tenants, other than the obvious higher rents and fewer properties, is that tenants might need to give two months’ notice to quit.

This means that they’ll need to find a property that is becoming available in two months’ time or pay rent on two properties for up to two months.

Reluctant Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:35 PM, 28th January 2025, About A day ago

Reply to the comment left by Cider Drinker at 28/01/2025 - 16:20
T cannot pay the rent for the next property in advance of the contract being signed as that is banned under the RRB. At best they can do to secure the next property is pay a holding fee which is one weeks rent.

Is the new LL going to want to hang around for 2 months on the promise the T moves in on the basis of that small amount being held? T can change their mind at any point and pull out.

The new LL would be better served waiting for the last month and then advertising....at which point demand will be far higher. Those T's having given the two months notice will be desperate to secure something and the LL will have the pick of all applications received.

Reluctant Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:38 PM, 28th January 2025, About A day ago

Reply to the comment left by Cider Drinker at 28/01/2025 - 16:20
be interesting to see if the plan to make ALL tenants give 2 months notice will be applicable immediately to all existing tenancies too.

I thought the plan was to make it easier for tenants? This makes it intentionally worse!

Cider Drinker

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

19:03 PM, 28th January 2025, About 23 hours ago

Reply to the comment left by Reluctant Landlord at 28/01/2025 - 17:35
I would always allow my tenants to leave with zero notice. That is, so long as the property is in a condition that makes it easily and immediately lettable.

Marlena Topple

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

19:24 PM, 28th January 2025, About 22 hours ago

Reply to the comment left by Reluctant Landlord at 28/01/2025 - 17:35
Exactly so

1 2

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More