Propertymark, the agents' trade body, reports that many in the industry are relieved that the Renters Reform Bill has been shelved due to the General Election.
The Bill did not advance through the 'wash up' process last week, a procedure that fast-tracks some legislation between the election announcement and Parliament's dissolution. As a result, the Renters Reform Bill did not make it through this phase.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, commented: “The legislation was introduced very late and, in trying to please everyone, ended up pleasing no one. Many agents are relieved that the government's plans to alter fixed-term tenancies and reform eviction grounds, without considering the unintended consequences, will not proceed. This legislation had significant flaws that could have created more problems than it solved.”
Douglas continued, “However, this relief is quickly overshadowed by uncertainty and concern over what the next government might do. The abrupt halt of this bill leaves a gap in policy direction, causing apprehension within the industry about future regulations.”
“We will continue to advocate for agent regulation, tax reform, more resources for courts and enforcement authorities, and preserving the flexible tenancy options that have made the private rented sector successful,” Douglas stated. “It’s vital for the stability and functionality of the rental market that these issues are addressed comprehensively.”
On a more positive note, the trade body was pleased that the Leasehold and Freehold Reform Bill successfully made it into law.
Douglas explained: “Our campaign data shows that many leaseholders regret purchasing leasehold properties due to complex leases and rising ground rents, which make these properties harder to sell. The new proposals are a positive step, offering more consumer protections. This is a significant win for leaseholders who have been burdened by these issues for years.”
However, Propertymark believes there is still work to be done. “We have long advocated for further measures: those involved in buying, selling, and renting leasehold properties must be qualified and regulated. Ground rents should be reduced to a nominal amount, and event fees need to be addressed to prevent exploitation,” Douglas added.
The shelving of the Renters Reform Bill has brought a mix of relief and uncertainty within the property industry. While many agents are pleased that potentially problematic changes to fixed-term tenancies and eviction grounds have been averted, there is widespread concern about what future government actions might entail. Propertymark continues to advocate for balanced and well-considered reforms that support both agents and tenants, emphasising the need for regulation, tax reform, and sufficient resources for enforcement.
The successful passage of the Leasehold and Freehold Reform Bill is a positive development, offering much-needed protections for leaseholders. However, further measures are necessary to fully address the complexities and challenges within the leasehold system.