‘Unworkable’: Industry calls for answers on Renters’ Rights

The Renters’ Rights Bill risks becoming ‘unworkable’ unless the industry is given clarity on key elements, including court reform, arrears and the timescale for change.

The NRLA has joined forces with the British Property Federation and the Lettings Industry Council to issue the warning ahead of Report stage in the House of Lords, due to start on 1st July.

In a letter to the Minister in the Lords, Baroness Taylor of Stevenage, they highlight a number of outstanding concerns which the Government has failed to address during the Bill’s passage through parliament – despite ongoing calls for clarity.

These include:

• Court reform: Despite pledging to ensure the courts were 'ready' for reforms, last year, the Government has yet to explain what this will look like on the ground and what it is  expecting to see in terms of waiting times. This is a major concern for landlords who are already facing waits of more than six months
• Tribunal backlogs: The organisations believe plans making it easier for tenants to challenge ‘above market rent’ increases at a Tribunal are unworkable, given there is no reliable single source of data setting out market rents in any given area. 
• Repossessions: Clarity is also needed on how the arrears exception for tenants who have fallen behind with their rent due to delays with Universal Credit payments will work. As private landlords are not automatically notified when a tenant is claiming benefits, they have no way of knowing if this is why arrears have built. That means the case could go all the way to court before they find out.
• Timescale for change: The letter raises further concerns that the Government has failed to provide the sector with clarity about when it expects changes to rental tenancies to take effect the Bill receives Royal Assent. This is vital if the sector is to be fully prepared to deal with a smooth transition to the new systems and processes.

In a joint statement Ben Beadle, chief executive of the NRLA, Melanie Leech, chief executive of the British Property Federation and Theresa Wallace, chair of The Lettings Industry Council, said: “We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers.

“We want the Bill to work in practice and enjoy the confidence of good landlords. However, unless clear answers to the issues we have raised are forthcoming from the Government, those very landlords have every reason to be concerned.”

More information

To read the letter in full click here.

To read more about the NRLA calls ahead of Report stage click here.