The part of the Renter's Rights Bill no one seems to be talking about

This year, the big thing in private letting has been the pending introduction of the Renter's Rights Bill. I see a lot of discussion about it online, and it comes up in conversations offline as well, so I might as well add my ten pence worth.

Understandably, lots of landlords and prospective landlords are anxious about it. However, as a letting agent at Chestertons, I see it as my role to make sure our clients - both landlords and tenants - are appropriately supported when it comes to not only abiding by the rules, but also having positive working relationships with one another.

That said, I am curious as to the collective view on one particular aspect of the Bill, which seems to be flying under the radar. That's the proposal that says if landlords regain possession of their property with a view to selling it, but then either change their mind or find they are unable to sell, they are not allowed to market it to re-let (including Airbnb), for at least 12 months from the point of serving the eviction notice.

It's not that it's not being mentioned at all - it's there in the detail along with all the other changes when they're listed by media and agents alike. However, it doesn't seem to be dissected or questioned in a way that asks whether this is actually going to achieve what it means to achieve?

Targeting the few but catching the majority?

The hypothesis is presumably that this rule will stop unscrupulous landlords from being able to get around the changes to Section 21.

I am not naive enough to think that there aren’t people out there who will try to get around the rules on technicalities. However, nor am I cynical enough to think that mindset applies to the majority. Most landlords are hard working individuals who have one or two properties they have saved hard for or have inadvertently ended up with through life changes. They let those properties out with very little (if any) profit from rent, as a bricks and mortar savings pot for a well-earned retirement, their kids' university fees, or some other long-term plan.

I also know that people who are determined to break the rules, or the spirit of the rules, will do so regardless. In short, while I bow to the greater knowledge of the powers that be, I think this part of the Renter's Rights Bill is going to punish the people who play by the rules more than it prevents those who are hell bent on ignoring them.

Is this going to achieve what it means to?

My purpose in raising this isn't really to have a rant - it's important that tenants have safe and fair housing options - everyone should feel secure in the place that they live. However, most landlords are decent people and it won't help anyone to make it prohibitive for them to rent out the properties they own. 

In reality, I think there's a high chance that this action is likely to lead to fewer properties being available to rent in the long-term, which seems to defeat the need for more housing availability across the country.

As a case in point, Rightmove estimates that nearly a fifth (18%) of properties on the sales market at the time of the Autumn Statement were previously available on the rental market, compared with 8% in 2010. Perhaps unsurprisingly, that trend seems to be at its most potent in London. That rather supports the concern that a lack of supply in the rental market is only going to get worse, and the chances are there will be more vacant properties than ever in no time at all.

Does it all mean that property prices will drop?

Does it mean they will increase?

Will it mean rental prices increase in an already competitive market?

Time will tell, no doubt, and in the meantime my job is not to set policy but to support all the people we work for - landlords and tenants - to have the best experience possible in the property market. 

I just think it bears thinking about.

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