A leading property lawyer has warned that a clause in the Renters’ Rights Bill that prompted homelessness minister Rushanara Ali to resign, could reduce rental supply.

David Smith says the ‘protected interval’ contained in the bill that prevents a landlord from re-letting a property for up to 12 months after an eviction, could “deprive renters of much-needed housing”.

Step down

Ali stepped down after giving four tenants notice to quit from her rental property, and then relisting it within weeks for £700 more per month.

She previously let the four-bedroom property near Olympic Park for £3,300 a month, but new tenants are paying £4,000pcm.

Both the NRLA and Propertymark have previously warned that the clause will hit both landlords and tenants alike.

Under the new rules, such homes would have to sit empty for a year, further restricting supply and depriving renters of much-needed housing.”

Smith, who is Property Litigation Partner at London law firm Spector Constant & Williams (main picture), says: “The reporting around this case has not been entirely accurate. Under the proposed Renters’ Rights Bill, if a landlord evicts tenants in order to sell, they would be prohibited from re-letting the property for 12 months, not six.

“This situation also highlights a common problem in the private rental sector that landlords often serve notice to sell, but around a quarter of those properties never actually sell and end up back on the rental market,” he says.

“Under the new rules, such homes would have to sit empty for a year, further restricting supply and depriving renters of much-needed housing.”

He says the bill could “unintentionally reduce the availability of rental properties”.

More on the Renters’ Rights Bill