Propertymark has played a leading role in shaping the debate, ensuring property professionals voices are heard. The influence of more than 200 letters from our members was clear during the discussions in the Lords. We have challenged several aspects of the Bill, including proposals to limit rent in advance payments and the lack of clarity around short-term lets and court capacity, and we continue to call for a clear and realistic implementation timeline, as well as reforms that protect vulnerable tenants while ensuring fair treatment for landlords and agents.
We were pleased to hear Baroness Scott of Bybrook echo our members’ warning that the legislation risks increasing burdens on landlords, discouraging them from remaining in the rental market, and ultimately reducing supply at a time of rapidly growing demand. In economic terms, this can only mean one thing: higher housing costs for renters.
UK Government minister Baroness Taylor of Stevenage defended the reforms as both necessary and fair, asserting that good landlords have nothing to fear from the reforms, whilst crossbench housing expert Lord Best stated that the increasing burden of legislation will make professional agents invaluable for landlords, who will rely on qualified letting experts to keep them compliant and informed.
Practical implications for letting agents
If enacted in its current form, the Renters’ Rights Bill will bring significant practical changes for letting agents and their landlords in England and will require agents to adapt their procedures and documentation. Key changes include:
- End of ‘no-fault’ evictions: Section 21 evictions will be abolished, meaning agents will no longer serve no-fault notices. Instead, landlords must rely on revised grounds for possession (e.g. for rent arrears or misconduct), so agents will need to guide clients through the proper legal processes for regaining possession when necessary.
- Open-ended tenancies: Fixed-term tenancies are being replaced by a new periodic tenancy regime. Letting agents will need to adjust tenancy agreements and advise both landlords and tenants on the implications of open-ended tenancies – for instance, how landlords can regain possession under the new rules and how tenants can give notice.
- Rent increase safeguards: Stronger protections against unfair rent increases are part of the Bill’s aim. Agents may only be able to raise rents once per year under the proposals, and excessive increases could be challengeable. This will require agents to implement compliant rent review practices and keep clear records to justify changes.
- Private Renters’ Ombudsman and Portal: All landlords will be required to join a new private rented sector Ombudsman scheme and register their properties on a new digital Property Portal. In practice, letting agents are likely to handle these registrations and membership obligations on behalf of landlords. Agents should prepare for additional administrative duties to ensure every tenancy is registered and any disputes can be resolved through the Ombudsman.
- Higher property standards: The Bill extends the Decent Homes Standard to private rentals, meaning minimum standards for property condition will be enforced. Agents will need to work with landlords to carry out any necessary improvements and ensure properties meet the required standards (for example, regarding safety and state of repair) before letting them out.
These reforms will require letting agents to adapt their procedures and documentation. Importantly, many landlords will look to their agents for guidance in navigating the new rules.
Propertymark’s ongoing campaign
We support the Bill’s aims to improve renting conditions, but we are pressing policymakers to amend and clarify certain areas so that the reforms do not inadvertently penalise responsible landlords or their agents.
We urge our members to stay engaged and to continue sharing feedback, as real-world insights from letting agents are vital in informing last-minute improvements. We provide regular updates and support to members online, via email, and on social media. Visit your online account to update your communication preferences and register for updates.
We are also dedicated to helping agents prepare for the changes that are coming. We provide resources, including detailed guides and practical advice, to help agents understand and adapt to the Renters’ Rights Bill. In addition, we run webinars and events to brief agents on the Bill’s progress and what it means for their businesses.
We remain committed to working with the UK Government so that this landmark legislation achieves its goals without jeopardising the supply of homes, and to ensure our members are ready to implement the new rules as soon as they become law.
It is positive to hear many of the issues Propertymark and its members have raised were mentioned by members of the House of Lords during the Committee Stage debate of the Renters’ Rights Bill. It’s vital that the reforms are fair and balanced for both landlords and tenants.
We continue to caution against a one size fits all approach to the new tenancy regime and arguments used by the UK Government against retaining fixed term tenancies, with concerns about tenants being locked in low standard property will surely be tackled by the introduction of the Decent Homes Standard and Awaab’s Law to the private rented sector. Consequently, we remain concerned about the lack of scrutiny of the Labour Government’s proposals.
Furthermore, there is concern that any potential reduction in choice for tenants and less flexibility when renting property will put up rents in the long run. There is still time for Ministers to recognise the need to retain fixed term tenancies as an option, extend the student ground, amend the deposit cap and give clarity on court reform to ensure the legislation is fit for purpose.
Renters' Rights Bill
The Renters’ Rights Bill was introduced to the UK Parliament on 11 September 2024, will ban Section 21 evictions, and introduce a new tenancy regime and new requirements for property standards and rent increases.
