The vital role of letting agents
We continue to campaign for the professionalisation of the sector, with mandatory minimum qualifications for letting agents. Our members are an important asset for the UK Government in raising standards, as they are best placed to help the sector adapt and ensure that new legal standards are applied.
Fixed terms provide stability and certainty
In a spirited exchange with Housing Minister Matthew Pennycook, MP, Douglas stated that by insisting on the removal of fixed terms the UK Government risks creating complications in the sector by attempting to solve a very limited issue.
Our members report that many tenants seek fixed terms that give them the certainty of tenure that suits their circumstances, for example, when working in a contract job, undertaking a training course, or caring for a family.
Equally, both existing landlords and those considering investment in the sector, value the certainty that their property will be occupied for a set period, and they can count on the rental income to cover their costs. There is also concern from the Build-to-Rent sector that due to their prime locations, high specifications and higher rents, tenants could be more tempted to use them as short-term accommodation and leave after just a few months.
Student market turmoil
For the student market, the loss of its cyclical structure with the introduction of periodic tenancies would be disruptive and could lead to a shortage of appropriate homes in the right locations for those who need them.
It’s difficult to define a student let due to the many different types of students, varying term times, mixed tenancies, and the needs of overseas students. Therefore, the current assumption that all student lets are HMOs badly misses the mark.
Propertymark suggests that the simplest option would be to retain a fixed-term tenancy option for students and mixed households.
Ombudsman must have a clear remit
The proposals raise significant questions about how a new Landlord Ombudsman would interact with the two existing redress schemes for letting agents, with local authorities, and with the courts and tribunals service.
Propertymark has long argued that before adding further layers of regulation it is vital that MPs sort out gaps in the existing redress schemes and provide a statutory code of practice to ensure they are adjudicating consistently. For example, there is no current requirement or clear guidance for a complaints procedure, which results in inconsistency across the sector.
Access to justice is fundamental
Douglas, and speakers throughout the Committee session, emphasised the central importance of court reform, and Pennycook agreed, stating that there was a shared understanding between the UK Government and the sector on this issue. However, there is still no detail on what conditions need to be met for the courts to be considered ready for the impacts of the Bill.
During the progress of the previous Renters’ Reform Bill, The Levelling Up, Housing and Communities Committee warned that tenancy reforms could be undermined by an unreformed court system and advised that the UK Government should significantly increase the courts’ ability to process possession claims quickly and efficiently.
The stability of the private rental sector relies on landlords and agents having certainty about how they can operate their businesses and trust that they will be able to gain possession of their property promptly when they need it.
Without recognising the critical role letting agents play in guaranteeing tenants’ standards improve and helping landlords understand the legal complexities of existing and new legislation, the Renters’ Rights Bill is unlikely to deliver the fairness and stable rents that many tenants deserve.
There must also be a focus on encouraging investment to help boost housing supply as we continue to witness demand further increase.
The Bill risks being rushed through Parliament and creating serious consequences that will be difficult to undo.
