Ministers need to tell landlords and tenants when the measures in the Renters’ Rights Bill will take effect according to the National Residential Landlords Association (NRLA).
The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer, however with the Bill not scheduled to begin detailed scrutiny in the House of Lords until after Easter, this timetable will now be missed.
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.”
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 and 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 is calling for changes 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.