Why do Rental Reforms favour tenants?

Trade bodies have vigorously lobbied government during the two and a half year process leading to the delivery of the Fairer Private Rented Sector White Paper this week.

It’s fair to say those bodies were underwhelmed by its contents.

Nathan Emerson, chief executive of ARLA Propertymark, says: “After waiting three years to see exactly what this reform will look like, we’ve now got a set of proposals titled ‘The Fairer Private Rented Sector White Paper’. But there are some elements that don’t appear to be so.

“How is it fair that a tenant can simply end a tenancy at a time of their choosing, but an agent or landlord has to present a valid reason that is defined in law?

“Now we have the detail of what’s being proposed, we will be closely scrutinising it and working with Ministers to help them understand how on a practical level it will impact our letting agents members and their landlords.

“Our sector provides around 4.4 million households in England with a place to live. Property is a good long-term investment but the number of property owners choosing to withdraw from this area is growing.

“That’s the result of a decade of tax and regulatory burden that simply does not incentivise investment, especially for single property landlords who make up 43 per cent of the market.

“The private rental market is already under huge strain with renters outstripping available properties and we need to be able to attract new investment.

“If Ministers really do want to create a ‘fairer private rented sector’, they must work with us to ensure these reforms are carefully balanced and any interventions to achieve short-term objectives do not constrain the market in the longer term.”

And the chief executive of the National Residential Landlords Association, Ben Beadle, says: “Whilst headline commitments to strengthening possession grounds, speedier court processes and mediation are helpful, the detail to follow must retain the confidence of responsible landlords, as well as improving tenants’ rights.

“We will be analysing the Government’s plans carefully to ensure they meet this test. A failure to do so will exacerbate the housing crisis at a time when renters are struggling to find the homes they need.

“The eventual legislation needs to recognise that government actions have led to a shortage of supply in the sector at a time of record demand. It is causing landlords to leave the sector and driving up rents when people can least afford it.”

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