The Renters’ Rights Bill could trigger an exodus among landlords, reducing the supply of affordable housing, industry leaders have warned.

As the legislation comes under scrutiny in the House of Lords today, Goodlord’s Oli Sherlock, is concerned about the potential harm it could do to the very people it’s intended to protect.

The ban on bidding wars could unintentionally cause a rapid increase in average rent prices as soon as reforms take effect, says Sherlock. With landlords forced to accept no more than the advertised rent, many will understandably be tempted to up their prices from the off.

County Court Judgments

“When it comes to Section 21, there is a real risk that removing this power from landlords may lead to more rental disputes going to court,” he explained.

“This could see thousands more tenants receiving County Court Judgments for issues such as rent arrears - damaging their credit scores and potentially restricting their access to properties further down the line.”

An extension of the notice period in the event of arrears - increasing from two months to three months - might seem like good news for tenants, says Sherlock, but the reality is that by the time tenants are in two months arrears it’s often hard to reverse their position. Adding a further month to this process will inevitably lead to larger personal debt.

He added that landlords also face increased pressure to comply with measures such as new EPC requirements.

“Without serious action to address these concerns, we could see a landlord exodus when the new rules are introduced.

“If that happens, the supply of affordable housing will be reduced and rents will only increase, further exacerbating the problems faced by tenants,” he explained.