Renters’ Rights Bill sparks industry debate

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.

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