How could the Renters Rights Bill impact letting agents?
The Renters’ Rights Bill has sparked significant debate among letting agents, landlords, and tenants. Here are some insights from various sources:
- The Renters’ Rights Bill introduces several new rules that impact letting agents. For instance, landlords can only increase rent once per year and must provide a statutory rent increase notice at least two months in advance. The bill also prohibits landlords and letting agents from inviting, encouraging, or accepting offers of rent above the published asking price.
- A survey revealed that two-thirds (66%) of letting agents believe the Renters’ Rights Bill will ultimately lead to fewer rental properties being available. More than half of landlords (56%) planning to downsize or exit the market cited incoming legislation as the primary reason [1].
- Propertymark has raised concerns about the unintended consequences of the Renters’ Rights Bill, such as the abolition of fixed-term tenancies, which could affect students and other tenants who prefer fixed-term agreements[2].
- The bill introduces a more regulated environment for letting agents, requiring close attention to tenancy management, compliance with new rent increase procedures, and registration with a database and ombudsman[3].
- The abolition of Section 21 no-fault evictions means landlords will need to rely on specific legal grounds to remove tenants, potentially leading to longer eviction timelines and increased financial and administrative burdens[4].
While the Renters’ Rights Bill aims to protect tenants and improve housing standards, it presents considerable challenges for letting agents and landlords, including increased regulation, potential reduction in rental property availability, and more complex eviction processes.
As an RICS regulated firm, James & Sons are well positioned to handle the changes from the Renters’ Rights Bill due to several key factors:
- Expertise and Standards: RICS members adhere to high professional standards and are well-versed in the latest regulations and best practices in the property sector. This ensures that they can provide accurate and up-to-date advice to landlords and tenants.
- Holistic Support: Due to their high level of expertise and professionalism, RICS members can offer comprehensive support to landlords, providing effective and economical solutions.
- Market Insights: RICS surveys and reports provide valuable insights into market trends and tenant demands, enabling firms to make informed decisions and adapt to changes in the rental market.
- Professionalism and Compliance: RICS regulated firms are committed to maintaining high standards of professionalism and compliance. This includes adhering to the new regulations introduced by the Renters’ Rights Bill, such as the abolition of Section 21 no-fault evictions and the introduction of the PRS Ombudsman and Property Portal.
- Advocacy and Influence: RICS actively engages with the government and other stakeholders to advocate for the interests of landlords and tenants. This includes pushing for reforms in the court system to ensure that landlords can efficiently manage their properties and address issues such as rent arrears and anti-social behaviour.
- Training and Resources: RICS provides its members with access to training, resources, and guidance on how to navigate the changes brought about by the Renters’ Rights Bill. This ensures that RICS regulated firms are well-prepared to implement the new regulations and support their clients effectively
In short, the combination of expertise, high standards, market insights, and advocacy positions RICS regulated firms to handle the changes from the Renters’ Rights Bill effectively and support their clients through the transition.
