The government is being urged to tell landlords and tenants when measures in the Renters’ Rights Bill.
The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to begin detailed scrutiny in the House of Lords until after Easter, the National Residential Landlords Association (NRLA) points out that this timetable will now be missed.
Whilst the government has said it will give the sector “as much notice as possible” about when the Bill will be implemented, no further detail has been provided.
The NRLA highlights the fact that almost five million households will be affected by the decision to end fixed term tenancies, illustrating the scale of the challenge facing the private rented sector.
A minimum of six months from the point at which regulations are published will be needed to ensure that landlords, tenants, and the businesses which support them are adequately prepared for these reforms, the NRLA argues.
The UK government should learn from the experience of implementing similar reforms elsewhere across the country, which uncovered significant difficulties that took a substantial amount of time to resolve.
The NRLA says that changes needed to ensure the smooth implementation of the system replacing Section 21 include:
+ Equipping landlords, agents and legal professionals with guidance and training to manage the transition effectively.
+ Adjusting policies and rates across insurance and mortgage providers.
+ Adapting court procedures to prepare for an increase of in-person hearings.
+ Training letting agents and updating their internal processes and IT systems.
Ben Beadle, chief executive of the NRLA, said: “The lack of clarity is causing needless uncertainty for both landlords and tenants. It is damaging the rental market at a time when there is already a chronic shortage of homes to rent.
“Given the extent of the changes, at least six months will be needed to ensure a smooth transition to the new tenancy system. Anything less will be a recipe for confusion and chaos.
“The idea that such sweeping changes could be made overnight is, at best, wishful thinking.”