Potential changes to the Bill
Lord Best indicated that while some amendments to the Bill are likely, the core objectives are expected to remain intact. In particular, he stated that the UK Government will not reconsider abolishing fixed-term tenancies, but it is still possible that some flexibility could be granted for student tenancies.
Propertymark has long been vocal on the issue of fixed-term tenancies. Our Future of Renting position paper, published in December 2021, highlighted to the UK Government that a blanket move to periodic tenancies would mean that students find it difficult to rent a property.
Exacerbation of supply crisis
The panel raised concerns about the potential loss of PRS homes, highlighting the likelihood that a significant number could move to become short-term lets or leave the housing market entirely. This would make it more difficult for tenants to find stable, long-term homes.
The Propertymark Housing Insight Survey shows that demand remains high, with 92 prospective tenants registering per member branch - 7 people for each available property - in November 2024.
Throughout the last twenty years renting has more than doubled in popularity, and the UK Government must offer sensible support that encourages long-term investment within the sector to stop this imbalance from getting worse. A recurring theme in the discussion was the urgent need for a comprehensive and coherent strategy for the PRS to address current challenges and ensure its long-term sustainability, including clear guidelines and support for all stakeholders involved.
Court capacity and process loopholes
Nothing has yet been done to address long-standing anxieties about the ability of the courts to cope with the increased caseload that will follow the removal of Section 21. The time from claim to hearing continues to rise, with the average wait time for a warrant currently at around 29 weeks, and sometimes as high as 40 weeks in London. Delays in enforcement are also common due to a lack of County Court Bailiffs in many areas.
The discussion also underscored potential loopholes in the tribunal process that could prove costly for landlords. There is a call for reforms to ensure a fair and efficient system for resolving disputes between landlords and tenants.
Impact of Local Housing Allowance rate freeze
In addition to the Renters' Rights Bill, the ongoing freeze on Local Housing Allowance (LHA) rates has significant implications for the housing sector.
The Local Government Association (LGA) reports that, over the past five years, there has been a £737.3 million gap between the housing benefit paid out by councils for temporary accommodation and the amount reimbursed by the government. This shortfall places additional financial strain on local authorities, which are already grappling with increased demand for housing support.
The combination of the Renters' Rights Bill and the LHA rate freeze presents both challenges and opportunities for property professionals across the UK. Staying informed and engaged with these developments is crucial for navigating the evolving landscape of the housing sector.
Propertymark campaigning
Propertymark has consistently raised awareness about the potential impacts of the legislation, offering constructive suggestions to create balanced reforms. To influence policy development, we’ve provided expert testimony to parliamentary reports, responded to public consultations, and produced research reports and briefings that have been shared with Ministers and UK Government officials.
Over 100 members have used our Campaign Toolkit to write to a member of the House of Lords ahead of the Second Reading of the Renters' Rights Bill on 4 February 2025. We are meeting with a number of Lords and Ladies as a result of this to continue those conversations and make sure that the voices of letting agents are heard in the next stages of the Bill.
The entire housing sector is about to embark on some of the biggest changes seen in over thirty years with new planning reform for England and Wales working its way through parliament, which will pave the way for the UK Government to start delivering their ambition of over 1.5m new homes before 2029.
Similarly significant legislation that will impact the lettings market across England is also moving at pace through Westminster in the form of the Righters’ Rights Bill. This will fundamentally change key rights for both renters and landlords, and it remains imperative that this new Bill strikes a workable and fair balance for all involved.
