Propertymark has continued to campaign on several key areas to improve the Bill. These include ensuring impact assessments and reviews on the housing market, courts and tribunals, improving how joint tenancies will end, commercial leases, the ability for local authorities to enforce the legislation, levelling the playing field for students and the option of fixed-term tenancies.
The Report Stage allows another opportunity for the UK Government to engage with the sector and ensure the legislation is fit for purpose and reduces costs for landlords and tenants.
We urge policymakers to listen to the sector and make the necessary changes to safeguard supply, stability and standards in the private rented sector. Propertymark remains committed to working with Parliament to achieve legislation that works in practice, not just on paper.
Time for the sector to prepare
A realistic lead-in time is vital. With over 23,000 letting agency businesses in England supporting more than 11 million tenants and 2.3 million landlords, we are calling for a minimum six-month implementation period. This will give agents time to understand the changes, adapt systems and processes, and support clients effectively through the transition.
Courts are not ready
We remain deeply concerned about the capacity and capability of the court system to handle more contested eviction cases due to the removal of Section 21 ‘no-fault’ evictions. Landlords who previously relied on this route will now have to provide evidence of specific grounds for possession, placing further pressure on already overstretched courts.
Enable landlords to manage risk
The UK Government must reconsider extending the current deposit cap. This would help deliver on the aim of addressing challenges around rent in advance, and support landlords to take on more risk—such as allowing pets. Our research shows that 57 per cent of landlords and agents have been unable to recover the cost of pet-related damage under the current system.
Protect the student market
Another key oversight in the Bill is the treatment of student accommodation. While Houses in Multiple Occupation (HMOs) used for students will benefit from Ground 4A exemptions, allowing landlords to regain possession ahead of a new academic year, one- and two-bedroom properties—often rented by students—are not covered. We are calling for Ground 4A to be extended to include these properties to avoid unintended disruption in student housing provision.
Clarity needed for mixed use buildings
A commercial tenant who rents out flats above their premises needs vacant possession of the entire building if they want to exercise a break clause or return their lease at the end of the term. However, there is no clear clause in the Bill which allows a commercial leaseholder to serve notice on their residential tenants (unless they are in breach).
This could pose a huge issue for commercial leaseholders and prevent them from renting out residential units if they are unable to regain possession. It will also impact the amount of housing stock on the market if this widespread practice becomes untenable.
Level the playing field
The registration of short-term lets, as legislated for in the Levelling-up and Regeneration Act 2023, must be enacted without delay to achieve parity between long-term and short-term rental sectors and prevent further disadvantage for landlords providing homes in the long-term private rented sector.
