Paul Ruocco, Managing Director of Home Minders highlights the key issues in the residential property market

The Renters’ Rights Bill, the biggest change in English housing law since 1988, is intended to address a range of issues across the private rented sector creating more protections for renters whilst not discouraging landlords from staying in the market. Whilst we broadly welcome this aim, striking a balance for both renters and landlords that is workable and fair will be a challenge.

The main issue for landlords is the abolition of Section 21 ‘no-fault’ evictions and the removal of fixed-term tenancies providing more security for tenants. However, most tenants have a good working relationship with their landlords, as is the case here at Home Minders and there will still be grounds for landlords to reclaim their properties so all in all this should not prove too much of a problem.

Other far-reaching provisions include:

• the introduction of a new ombudsman service which all private landlords would be required to join – this is broadly welcomed across the sector;
• A legal standard for property conditions to ensure homes are decent, safe and repairs are carried out in a timely fashion – not contentious and will raise standards;
• Banning rental bidding wars – rents will need to be published and it will be illegal to accept a higher offer – this means accurate pricing will be essential;
• Limiting rent increases to no more than once a year – with two months’ notice
• Creation of a private rented sector database bringing together key information for landlords, tenants and local authorities. This digital property portal will be mandatory for landlords.

The good news for our landlords and tenants is that we can continue to offer a high level of advice, help and guidance as new legislation comes onto the statue book. For instance, as part of our property services, we would be responsible for registration on the digital property portal as well as other issues requiring additional compliance. As well as working for our clients we are well placed to take on the management of properties that have hitherto been managed by individuals, now there is so much more red tape to cope with.

However, we are concerned that this Bill may compound the severe shortage of homes. According to the NRLA (National Residential Landlords Association), there is an average of 21 tenants competing for every available home and additional regulations and legislation that could deter prospective or current landlords from investing in property will just add to the problem. We have first-hand experience of this through our sister company, Alan Goldin Estates, where all the properties we have to rent have a long list of applicants and are snapped up almost immediately.

Not only that, but we don’t believe the end of bidding wars will do anything to control prices and in addition the Government needs to address the current court backlog to cope with the additional workload.

As the Bill progresses through Parliament, there will be tweaks and changes before it comes into force around the middle of next year and we will continue to closely monitor all developments to ensure a smooth transition for all our landlords and tenants.