ARL response to the Renters’ Rights Bill second reading

“Certainty of regulation is essential to attract institutional investment in order to deliver the good quality rental stock which is in such great demand. Therefore, the Association for Rental Living (ARL), the representative body for the rental living sector in the UK including build to rent (BTR), welcomes the progression of the Renters’ Rights Bill and its second reading.

“Whilst welcoming any legislation that will improve the rental experience and support the professionalisation of the rental sector, we call on the Government to recognise that the BTR sector already delivers, and in many cases exceeds, the outputs which the Bill is designed to deliver. As a customer centric sector, building trust and loyalty with our customers is a cornerstone of BTR culture.

“However, the ARL is concerned about the impact of abolishing fixed term assured tenancies and the proposal to move to periodic assured tenancies.

“As outlined in one of the seven proposed principles of the BTR Code of Practice – an ARL-led initiative currently undergoing road testing by the BTR sector – adopting fairness and flexibility as hallmarks of tenancy terms, including offering variable lease term lengths, is a core part of the BTR offering. BTR sees value in ensuring that the experience of renting a BTR home is a positive, safe, and secure experience. Our investors reasonably value a limited fixed term tenancy that has been historically present in the rental economy but is not provided for in this Bill. A minimum fixed term tenancy also has value for our customers, who cite the lease insecurity and the threat of eviction as a major criticism of status quo PRS.

“The ARL is concerned that periodic tenancies could attract transient residents who do not ‘buy into’ BTR’s culture of providing long term homes and communities. Placemaking and community are one of the four pillars of BTR; both require committed residents.

“The ARL’s concerns also remain around the ability of the courts, in their present state, to deal with the increased workload that will be created without Section 21. Whilst the ARL supports the abolition of Section 21, we continue to call for court improvements ahead of legislation being passed.

“It is critical that the Government undertakes deep analysis into the proposals and practical implications of the Renters’ Rights Bill to ensure that any unintended consequences are avoided.

“BTR has a key role in accelerating the delivery of much-needed new homes, attracting domestic and international investment to fuel growth in our sector and the wider UK economy. We ask if the Bill in its current form, will help to attract the investment needed to deliver the 2 million-plus homes that the BTR sector has to offer.

“The ARL remains available to the Government on the Renters’ Reform Bill.”

Brendan Geraghty, CEO, ARL

 

Renters’ Rights Bill: call for evidence now open

Following the second reading of the Renters’ Rights Bill last week, the Government has opened a call for evidence.

The Government website states:

The Public Bill Committee will scrutinise the Bill line by line. The first sitting of the Public Bill Committee is expected to be on Tuesday 22 October and the Committee is scheduled to report by Thursday 28 November 2024. However, please note that when the Committee concludes its consideration of the Bill it is no longer able to receive written evidence and it can conclude earlier than the expected deadline of 5.00pm on Thursday 28 November 2024. You are strongly advised to submit your written evidence as soon as possible.

You can find out more here.