The Renters Rights Bill represents a significant overhaul of the way that the private rented sector functions. Following its introduction to parliament on 11 September 2024, myths and misconceptions have begun circulating throughout the property sector and amongst consumers about what the proposed legislation means in practice. With so many seeking clarity, Propertymark is here to provide confidence about what is going to change and what will remain the same.

The Renters' Reform Bill was introduced to parliament on 11 September 2024. If passed without amendment, the Bill will significantly overhaul the structure for private rented sector housing and repeal Section 21, alongside a number of other significant measures including the removal of fixed term tenancies, the expansion of Rent Repayment Orders, and a new landlord Ombudsman. There are many hurdles for the Bill to clear as part of the process of parliamentary scrutiny, but as Labour have a majority in the House of Commons the legislation could go through as quickly as next spring, with the reforms being implemented by late summer 2025.

Propertymark met with Housing Minister Matthew Pennycook, MP, and Baroness Taylor, Lords Housing Minister, ahead of the Renters’ Rights Bill being introduced to parliament on 11 September 2024, to hear details of the UK Government’s proposals and provide initial feedback on behalf of members. Key features of the Bill include the abolition of Section 21, a ban on in-tenancy rent increases, and the removal of fixed-term tenancies. Our engagement with Ministers and officials will continue as the Bill progresses, with further meetings already arranged.

An in-depth examination of nearly 200 studies has evaluated the consequences of rent controls and underlined the negative impacts, echoing Propertymark's evidence to the UK and devolved Governments. The focus of policymakers must be on other actions to make the private rented sector (PRS) more affordable, ensuring an adequate housing supply that meets increasing demand, and tackling existing inequalities of income and wealth.

Opening the new session of Parliament, King Charles III announced more than 40 Bills the UK Government has committed to introduce, with housing and planning firmly in the spotlight. Housebuilding, renters’ rights, and leasehold reform are all on the legislative agenda, along with significant devolution of powers to local authorities.

The UK General Election has returned the Labour Party to power with a parliamentary landslide, ending 14 years of Conservative government. Aiming to channel the spirit of Clement Attlee with a proactive and strategic approach to housing, the party campaigned on a manifesto that promised significant changes to planning rules, strict targets for delivery of new homes, reform of the private rented sector (PRS), long-term schemes to help young people onto the housing ladder, and local powers for councils to take over empty commercial premises.

A report commissioned by the Labour Party states that the opportunity to live in a secure, affordable and accessible home is out of reach for many people, and this is set to remain the case unless the system is changed significantly. They state that landlords and agents should be registered and accredited, recommend rent stabilisation measures, and support longer term tenancies based on the model of Rent Smart Wales.

The long-delayed Bill included over 200 amendments as it returned to the House of Commons for its Report Stage and Third Reading on 24 April 2024. Having been voted through by MPs it will now move to the Upper House, with Housing Secretary Michael Gove MP controversially stating that it’s up to the House of Lords to decide how quickly the Bill can become law.

The Leader of the House of Commons has confirmed the remaining stages of the Renters (Reform) Bill will take place on Wednesday 24 April 2024 with some key changes to the Bill brought forward. Whilst the UK Government has listened and reacted to some industry concerns, another chance has been wasted to effectively regulate property agents.

We have had direct correspondence from senior officials at the Department of Levelling Up, Housing & Communities (DLUHC) regarding amends to be tabled on the Renters (Reform) Bill, including communication between Housing Minister Jacob Young, MP, and Conservative MPs outlining further improvements that address some of the key concerns of letting agents and strike a fairer balance of security for both landlords and tenants.

Labour's reworked Renters' Rights Bill is intended to replace the Renters (Reform) Bill, and whilst it, essentially remains the same, its implications may be more significant for landlords and the private rented sector (PRS). Insights into the Bill from the landlord's perspective, obtained from Propertymark letting agent members' landlords in March 2024 are still prevalent. Established worries remain unaddressed, and more concrete guidance is necessary.

A series of draft amendments from Conservative backbench MPs reflect fears that the Bill will cause landlords to sell up, reducing the number of rental properties available. The proposals include making it a legal requirement that an impact assessment on the courts must be published by the Justice Secretary before a ban on no-fault evictions could be implemented.

Propertymark recognises the need for change within the sector. Nevertheless, the UK Government must avoid the unintended outcomes realised by similar reforms in the devolved nations and protect the future of the private rented sector, which is home to around 4.6 million people.

The Renters' Rights Bill has been reworked following Labour taking power in July 2024, which is intended to replace the Renters (Reform) Bill, and whilst it essentially remains the same, its implications may be more significant for the private rented sector (PRS). Research conducted with a geographically representative sample of Propertymark letting agent members provide valuable evidence that policymakers can use to help shape the Bill and inform its implementation. Established worries remain unaddressed, and more concrete guidance is necessary.

The All-Party Parliamentary Group (APPG) for the Private Rented Sector launched its report Ensuring Rental Reform Works for Tenants and Landlords at a session on 12 December 2023 with our Head of Policy and Campaigns, Timothy Douglas, in attendance to raise the concerns of Propertymark and its members as well as pushing our calls to qualify and regulate property professionals.

Propertymark has submitted written evidence to the Public Bill Committee on the Renters (Reform) Bill, citing data demonstrating the level of concern amongst our members about measures likely to make the PRS increasingly hostile to property owners and the unintended consequences for people in need of homes.