The Renters (Reform) Bill, aimed at ‘professionalising’ the Private Rented Sector (PRS), has received mixed reactions from industry leaders. While some welcome the measures, there are concerns that small landlords might be burdened with fragmented legislation.
Neil Cobbold, managing director of PayProp UK, the client accounting and automated rental payment specialists, warns that the lack of reassurances and details in the reforms could lead to landlords selling their properties at a time when rental properties are in high demand. Cobbold emphasizes the importance of driving up standards but cautions against overburdening small landlords.
Nathan Emerson, chief executive of Propertymark, the membership body for property agents, agrees with Cobbold’s viewpoint. Emerson supports the need to professionalise the industry and eradicate rogue landlords but expresses concerns that ongoing piecemeal legislation might further pressure small portfolio landlords.
The Renters Reform Bill, described as the most radical shake-up of the PRS in a generation, proposes several measures, including the abolition of Section 21 ‘no-fault’ evictions, the strengthening of Section 8 evictions, a legal right for tenants to have pets in rented homes, the introduction of a Decent Homes Standard, and mandatory landlord membership of an Ombudsman scheme.
Cobbold argues that the reforms should strike a balance between protecting tenants and ensuring the viability of the sector. While the abolition of Section 21 might worry some landlords, it addresses genuine concerns of tenants. Strengthening Section 8 should provide reassurance to landlords while affording tenants more protection.
Generation Rent, a tenant rights group, also supports the Renters (Reform) Bill, viewing it as a significant step forward for England’s 11 million private renters. They believe that abolishing arbitrary Section 21 evictions and requiring legitimate reasons for landlords to regain their properties will empower tenants to report issues and plan their lives more easily.
Cobbold highlights the importance of credible enforcement, noting the existing ‘postcode lottery’ in enforcing current rules, which allows rogue landlords and agents to operate. He urges the government to address this issue and proposes better enforcement mechanisms.
Apart from the Renters (Reform) Bill, the PRS is also set to be affected by the forthcoming Minimum Energy Efficiency Standard (MEES) regulations. These regulations, aimed at achieving Net Zero by 2050, will raise the minimum Energy Performance Certificate rating for all PRS homes from ‘E’ to ‘C’. However, Emerson warns that smaller-scale landlords may struggle to fund the necessary improvements and calls on the government to ensure adequate funding is available.
Cobbold advises small-scale landlords to seek partnerships to navigate the changing landscape, emphasizing the importance of adapting to upcoming changes. He suggests that self-managing landlords consider professional letting agents, who can provide expertise, ensure compliance, and offer tenants a positive rental experience.
Emerson adds that full mandatory government regulation of sales and letting agents is the most effective way to eliminate unprofessional and unethical agents, raising standards across the entire PRS.