Guide to the Renters' Rights Bill – A Message from Paul Tobias-Gibbins, MD of M&P Estates
The UK Government has recently issued a guide to the Renters' Rights Bill. However, while it outlines the key provisions, many details and timelines remain unclear.
Guide to the Renters' Rights Bill
I recognize the need for reform in the rental sector, but I share significant concerns about certain aspects of this legislation. The lack of effective enforcement by local authorities is particularly troubling, and I continue to advocate for a balanced approach that respects the rights of both landlords and tenants.
There is growing worry over the anti-landlord rhetoric, which is pushing landlords to exit the market or shift properties to short-term lets. The lack of available rental homes forces tenants to compete, often by offering higher rents. If passed in its current form, the Renters' Rights Bill is likely to worsen this issue by driving more landlords out of the long-term rental sector. It does not make sense when we have a housing crisis to deal with
Recommendations to Strengthen the Renters' Rights Bill
1. Increasing Supply
Recent changes to the tax regime and anti-landlord sentiment have diminished the appeal of investment in the private rental sector. The UK Government must:review all costs and taxes affecting private landlords to keep them in the market and to encourage new entrants to meet the high demand for rental homes.
Enact the Registration of short-term rental properties as outlined in the Levelling-Up and Regeneration Act 2023, creating a fairer playing field between short-term and long-term rental markets.
2. Retaining Fixed-Term Tenancies
Concerns have been raised about the introduction of a new tenancy regime and the removal of fixed-term tenancies, which can undermine security for tenants.
We recommend retaining fixed-term tenancies as an option, particularly for key workers and families. This should be accompanied by a publicly available impact assessment of the government's proposed changes.
3. Impact on Students
Removing fixed-term tenancies could severely affect the student rental market.
The UK Government should extend Ground 4A to include student sharers and consider shifting Student Maintenance Loans to monthly instalments. Allowing advance rent payments for student renters should also be considered to maintain access to suitable housing.
4. Pets in Rental Properties
While allowing pets in rental properties can make them more appealing and encourage long-term tenants, landlords remain concerned about potential damage. Even well-behaved pets can cause wear and tear on a property.
Clear guidance is needed on what constitutes ‘unreasonable’ conditions for refusing pets, especially in areas where pets may pose risks, such as near livestock.
To mitigate risks, the UK Government should consider making deposit levels more flexible and requiring pet insurance to cover potential damages.
5. Courts and Bailiffs
There are long-standing issues with the efficiency of the Courts in handling possession claims, with delays continuing to grow.
Eviction notices should be integrated into the Possession Claim system, online platforms for filing evidence should be expanded, and remote hearings should be utilised more frequently.
To reduce delays, the number of judges and bailiffs should be increased, and landlords should have the automatic right to use High Court Enforcement Officers where necessary.
I am committed to supporting positive reforms that protect tenants while ensuring landlords remain invested in the sector. By addressing the concerns outlined here, I hope for a fairer and more sustainable rental market for all.
One final thought before I finish. Landlords and Tenants are stereo typed by the media and pressure groups such as Shelter to meet the political agenda of the day. However, both Landlords & Tenants come from all walks of life.
