In a recent development, the sentiment among letting agents concerning the Renters (Reform) Bill has been overwhelmingly negative, according to statements made by Tim Douglas, the Head of Policy at Propertymark. As the bill awaits its Third Reading in Parliament, a significant 73% of members belonging to the Association of Residential Letting Agents (ARLA) express their dissatisfaction, deeming the proposed legislation as unfair.
Of particular concern is the potential impact of abolishing fixed-term tenancies, with 60% of agents apprehensive about adverse effects on tenants. A study conducted by Propertymark sheds light on these sentiments, revealing that the majority, or 70%, believe student lets should be exempt from the suggested removal of fixed-term tenancies. Additionally, opinions vary on the effectiveness of the Private Rented Sector (PRS) Database, with only 54% of agents anticipating an improvement in PRS standards, while 24% hold a contrary view.
Despite differing views on certain aspects, there is unanimity among agents on specific grounds for possession. A striking 90% of agents agree that breach of contract, repeated late rent payments, and securing a let based on false information should be deemed mandatory grounds for possession.
Propertymark’s members are advocating for the expansion of the PRS Database and Property Portal to include qualifications, registration, and regulation requirements for property agents. Among their key suggestions, they argue for tenants to retain the option of entering into a fixed-term tenancy if mutually beneficial and for private landlords to have the choice to enrol in existing redress schemes such as the Property Redress Scheme or The Property Ombudsman.
The association’s members are also calling for the incorporation of a statutory code of practice within the Renters (Reform) Bill. This code aims to provide a clear framework for adjudication and outline a long-term strategy for the establishment of a specialist housing court. Furthermore, they propose that if the portal becomes operational, the necessity for local licensing schemes should be eliminated. To expedite the process of returning deposits, the inclusion of inventories and check-in/check-out reports at the start and conclusion of tenancies is also recommended.
Tim Douglas of Propertymark emphasized the collective stance of the letting agents, stating, “The clear view from Propertymark letting agent members highlights the importance of the need for policymakers to retain the option of fixed-term tenancy where it is mutually beneficial to both parties, ensure new requirements for landlord redress complement the existing provisions that agents must adhere to, and the legislation is not a missed opportunity to regulate property agents and ensure landlords have confidence through new and strengthened grounds for possession.”