The looming Renters’ Rights Bill will both force more landlords to quit the sector and harm the tenants it is designed to protect, a leading lettings proptech has warned.

Goodlord says the legislation will be the ‘straw that breaks the camel’s back’ for many of the smaller-portfolio landlords who make up some 80% of the private rented sector.

Its insurance chief Oli Sherlock (main image) also warns that several of the provisions within the Bill, which is due to be scrutinised by the Lords today, will cause problems for tenants.

Sherlock is most alarmed by three key elements of the Bill – the ban on Section 21 ‘no fault’ evictions; the ban on agents or landlords initiating bidding wars; and tenants being enabled to get two months into arrears before eviction action can be started.

“The ban on bidding wars could unintentionally cause a rapid increase in average rent prices as soon as the new legislation comes into effect,” he says.

“With landlords forced to accept no more than the advertised rent, many will understandably be tempted to up their prices from the off.

Turning to the ban on Section 21, Sherlock says there is a real risk that removing this power from landlords may lead to more rental disputes going to court.

CCJs rise

“This could see thousands more tenants receiving County Court Judgements (CCJs) for issues such as rent arrears – damaging their credit scores and potentially restricting their access to properties further down the line,” he adds.

“The extension of the notice period in the event of arrears (increasing from two months to three months) may seem favourable for tenants but the reality is that by the time tenants are in two months arrears it is often hard to reverse their position.

“Adding a further month to this process will inevitably lead to larger personal debt. Such measures should be focusing on speedy resolutions for both parties, not extensions.”

There’s a danger this Bill will be the straw that breaks the camel’s back for many across the sector.

Goodlord is also concerned that the Bill will impact landlords as well as have unintended consequences for tenants.

“With the increased pressure of these changes coming on top of the potential costs of complying with measures such as new Energy Performance Certificate requirements, there’s a danger this Bill will be the straw that breaks the camel’s back for many across the sector.

“Without serious action to address these concerns, we could see a landlord exodus when the new rules are introduced,” says Sherlock.

“If that happens, the supply of affordable housing will be reduced and rents will only increase, further exacerbating the problems faced by tenants.”

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Timothy Douglas, Head of Policy and Campaigns at Propertymark

“The UK Government must listen to Peers and act on amendments to the Renters’ Rights Bill to strike a fair and workable balance for all parties involved,” he says.

“It is positive to see amendments which Propertymark have campaigned on included within the proposed new legislation, such as mandatory qualifications for letting agents, retaining fixed term tenancies as an option, court capacity for when no fault evictions are abolished and extending the deposit cap for renting with pets.

“It’s also vital that measures to register short term lets come in alongside these regulations to level the playing field.

“It remains imperative there is adequate support for landlords to plan and implement all necessary changes, and that all new legalisation is kept under full review ensuring it remains relevant, evidence-based and fit for purpose moving forwards.”

Calum MacInnes, Chair at SAPRS (Student Accredited Private Rental Sector)

“The Government continues to ignore warnings from the higher education sector about the risks the Renters’ Rights Bill poses to UK student housing. Students are already bearing the brunt of the cost-of-living crisis, facing rising expenses for both accommodation and tuition fees.

“Yet a straightforward solution remains – retaining the fixed-term tenancy system for the private student housing sector. This approach offers security to student renters and ensures landlords can make their properties available to new students at the start of each academic year.

“If the Bill remains unchanged, the student housing system – and with it, access to higher education – faces the risk of being irreparably damaged.”