OFFICIAL: Renters (Reform) Bill to cost letting agents £279 million

The Renters (Reform) Bill will cost letting agents at least £279 million once it has been implemented, a new impact assessment reveals.

The Renters (Reform) Bill Impact Assessment, published by the Department for Levelling Up, Housing & Communities, represents “costs to letting agents of reduced use by landlords” due to changes from assured shorthold tenancies and the removal of Section 21.

NEW MEASURES

But the costs, estimated over 10 years, do not take into account the time agents will have to spend familiarising themselves with the new measures.

The Assessment concludes that the main costs of the Bill will be borne by landlords and that “the estimated net cost to landlords is £10 per rented property annually”.

However, at a recent Levelling Up, Housing and Communities Committee oral evidence session, Rachel Maclean (main picture), Minister of State for Housing and Planning, admitted that it is the department’s intention to introduce measures currently missing from the Bill, including the Decent Homes Standard, as an amendment in the House of Commons.

OPPORTUNITY

Neil Cobbold, Managing Director of PayProp UK, says: “Savvy agents will have already spotted the opportunity in the proposed regulatory changes.

“It will be key to convert your existing let-only landlords into fully-managed clients.

“Charging landlords a fee for services including rent collection, maintenance and compliance with the Renters (Reform) Bill and the hundreds of other rules that govern the private rented sector, will boost your agency’s bottom line.”

But he warns: “For agents and landlords to properly assess the impact of the Renters (Reform) Bill on their businesses we need more information from the Government on how some of the measures will work and when they will take effect.

“Details on court reforms to speed up evictions, the Property Portal and the new ombudsman will be essential.”