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Renters and landlords ‘in the dark’ on new law, Labour warned

by Priya Shah – Business Editor

commons Rejects‌ Lords’ ‍Amendments to Rental Reform Bill, Leaving Landlords and Students⁣ Uncertain

LONDON ⁢-​ The House of Commons today overturned nearly all amendments proposed by the House of Lords‌ to the Renters (Reform) Bill, ‌sparking concern over the future availability of housing for students and raising warnings‍ of a⁢ shrinking rental market. A key amendment,defeated⁤ in the ‌Commons,sought to⁤ protect the annual ⁢cycle of one- and⁤ two-bedroom properties frequently occupied by students in their second year of study and⁤ beyond.

The bill, intended to overhaul the⁢ private rental‌ sector,​ now ‍moves ​forward without provisions ensuring landlords will continue to offer ⁣these smaller‌ properties to students‍ from one academic‌ year to the next. Critics argue this lack of certainty could force landlords to​ exit ​the student rental market, ⁣exacerbating ‍an already strained housing supply and potentially driving up rents. The decision follows warnings from Shadow Chancellor ‍Rachel Reeves that⁤ proposed tax hikes on landlords risk further constricting the rental sector.”Around a ‌third⁢ of housing typically lived in by those ​in their second year of study and above ⁢is ‌one- and two-bedroom properties,” explained Ben Beadle, CEO of the National Residential landlords Association. “Under current proposals, neither landlords nor students will have certainty‍ that this type of housing will be available from one academic year to the next.”

Greg Tsuman, managing director for Lettings at Martyn Gerrard Estate agents, described⁢ the Lords’ amendments as “injections of ​common sense,” lamenting ‌that the bill, as currently drafted, demonstrates a ⁣”fundamental misunderstanding⁤ of the private rented ‍sector.” He cautioned that a ⁣perceived lack ​of support could drive landlords away, leading to an ⁢imbalanced rental⁣ market. ⁣

“Renters, now more than ever, need professional landlords who are willing to stay ⁢in the market and invest further so rents don’t⁢ continue to climb,” ⁤Tsuman said. The Renters (Reform) Bill‍ aims ⁢to abolish​ Section 21‍ ‘no-fault’ evictions and ⁣introduce​ a⁤ strengthened Section 8 process, alongside a ⁤digital Property Portal. Though, industry figures​ are increasingly voicing concerns that ⁣the legislation, in its current form, will have unintended consequences for ​both ⁢renters and landlords.

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