Important debates sparked during the Renters' Rights Bill's second reading in the House of Lords on Tuesday, 4 February.
Watch as our London lettings experts Gareth Atkins, Managing Director - Lettings, and Fran Giltinan, Managing Director - Property Management & Customer Experience, analyse the key debates and their potential impact on London landlords and the rental sector.
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GA: The Renters' Rights Bill has just cleared its second reading in the House of Lords, and while the core legislation hasn’t changed, the debates have revealed some crucial concerns for London's property market. Let's break down the key issues that every landlord needs to understand.
The late addition of a ban on upfront payments has sparked intense debate. There are 3 million people renting in London and we see 10-15% of tenants using upfront payments – the self-employed, international students and those with poor credit history or fall just short of affordability checks. And in such a competitive market, this ban could significantly impact housing accessibility for these groups. It deserves further consideration. We see over 16 applicants vie for each property, so the government should understand that it will affect these groups more than landlords who can rent to the remaining 80%.
FG: Despite the Government’s assurances that they are collaborating with the Ministry of Justice, the Lords’ concerns about court system capacity remain valid. Our advice? Focus on what you can control. Thorough documentation and proper pre-tenancy procedures are crucial as they have always been. Remember, our property management and credit control teams are trained to handle complex situations as and when they arise.
The extension of the Decent Homes Standard to private rentals is an important step forward we support. Our property management team can connect you with trusted contractors and guide you through all of your compliance and maintenance requirements, ensuring a smooth transition to these new standards.
While we fully support the bill's objectives to protect tenants, success will lie in the details. Some measures, particularly around upfront payments and court processes, need careful consideration. As London strives to attract talent, with the Labour government's focus on "growth", we must ensure these reforms achieve their aims without creating new barriers.
GA: We will continue working closely with landlords to navigate these changes effectively. We will continue to lobby some of the elements of the bill which we feel will not have the impact the government desires. The bill now moves to committee stage and we will keep you updated throughout.
Source: The content in this video was written and delivered by Foxtons leading lettings experts to ensure you have the best information to hand.
We will continue to monitor the progress of the Bill to provide you with accurate, reliable information to support you as the legislation changes. Our team's hands-on experience comes from many years in the industry, so you can rely on our practical insight and comprehensive support.
