Property experts from Propertymark have raised significant concerns over proposed amendments to tenancy laws, arguing that certain changes could detrimentally impact both tenants and landlords. Timothy Douglas, Propertymark’s Head of Policy and Campaigns, emphasized these concerns during the recent committee session on November 14, 2023.
Fixed-term Tenancies Crucial for Stability and Market Dynamics
One of the key points of contention is the potential elimination of fixed-term tenancies. According to Propertymark’s survey, over 93% of agents indicated that removing fixed-term agreements would have negative repercussions for both agents and landlords. Advocates argue that fixed-term tenancies offer stability for tenants while ensuring consistent rent payments for landlords. Additionally, these agreements assist guarantors, especially for tenants with lower incomes or poor credit histories.
Propertymark underscores the critical role fixed-term agreements play in the student rental market, aligning property availability with the academic year. While supporting the proposal to prevent student overstay, they suggest granting private tenants the choice between fixed-term and rolling periodic tenancies.
Insufficient Grounds for Landlord Protection
The removal of Section 21, a major concern for landlords, lacks confidence due to remaining grounds seen as inadequate protection. Reports of tenancy fraud have surged, yet these serious issues remain discretionary, potentially leading to prolonged legal battles without assured property access for landlords.
Propertymark urges amendments to make breach of tenancy, property deterioration, and fraudulent tenancy acquisition mandatory grounds for eviction. They propose clear judicial principles regarding anti-social behaviour to fortify landlord protections.
Call for Regulation to Elevate Industry Standards
Propertymark continues advocating for the regulation of property agents, emphasizing the pivotal role they play in implementing proposed reforms. Elevating standards through qualifications and official regulation is seen as essential for industry compliance.
Recent governmental moves to mandate professional qualifications for property managers in the social rented sector have prompted Propertymark to push for parity in standards between the social and private rented sectors.
Unified Redress Systems and Mandatory Inventories Proposed
Propertymark asserts that only fully self-managing landlords should join redress schemes, highlighting the need for alignment between existing schemes to avoid procedural inconsistencies and confusion for consumers. They advocate for mandatory inventories or enhanced agreements that incorporate inventory reports to streamline the end-of-tenancy process, minimizing disputes.
Flexibility Needed in Pet Policies and Deposit Regulations
The organization urges flexibility in setting deposit levels to accommodate pet presence, as current laws restrict landlords and agents from taking higher security deposits for tenants with pets. Propertymark calls for clear definitions and examples of unreasonably refusing consent to keep pets, citing the lack of practical guidance in existing regulations.
As discussions on tenancy laws continue, Propertymark emphasizes the need for balanced reforms that consider the interests of both tenants and landlords while promoting industry standards and clarity in regulations.