Renters’ Rights Bill: Is your agency ready?

Renters’ Rights Bill: Is your agency ready?

When the Renters’ Rights Bill was introduced in parliament last week, much of it was as the sector expected. The only real surprise was the lack of any reassurance that court backlogs would be addressed before Section 21 evictions are outlawed.

The Government has a significant majority and it’s possible that the reforms could be in place by summer 2025. Are you ready? Have you thought about how this will affect your business model? Have you considered the full implications of periodic tenancies, the end of blanket bans, the outlawing of bidding wars? Yes, we have known that this was coming, but as with every shake up, some are more prepared than others. There is considerable uncertainty in the sector, and not just amongst landlords.

Make no mistake, agents are affected. You’ll be restricted from responding to market forces. You’ll have the extra responsibility of checking that landlords are appropriately registered. And even before the bill passes into law, you’ll be trying to reassure and protect the interests of your landlords, many of whom will be wondering if they should quit the sector before their rights are completely eroded.

We anticipate disruption, but the disruption won’t impact a system that’s running smoothly now. Rent arrears are rising. Incomes remain stretched. The courts are clogged. It can take months to regain possession of a property. Tenants are encouraged by local authorities to ‘play’ the system. For agents, this isn’t news. It’s the new normal and it still surprises us that some agents don’t take advantage of one of the most effective protections – rent and legal expenses cover.

Rent and Legal Protection Insurance delivers real reassurance for landlords. It’s effective, affordable and like the best insurance products, tailored to the needs of the sector. It covers both rent arrears and legal costs and cover can be taken out for existing tenancies. What’s more, because we offer pay monthly options, it’s easy to offer this extra peace of mind as part of your management fee.

In time, the sector and all its stakeholders will adapt to the changes. We will become familiar with the new rolling tenancies, the new regulations and the redress schemes. But lettings agents need to be on the ball now. Complacency could spell catastrophe because the measured change we lobbied for looks increasingly likely. The rental market is heading for a huge shake up. Letting agents need to be fully aware of the potential effects and braced for impact.