The government has been accused of pressing ahead with renter reform measures that will cause gridlock in the justice system, and pit landlords and tenants against each other in protracted litigation.

Speaking during the second reading of the Renters’ Rights Bill, Shadow Housing Secretary Kemi Badenoch insisted that the legislation wouldn’t work because a similar approach had failed to protect the majority of private residential tenants in Scotland against excessive rent increases or high advertised market rents.

She told MPs: “The government claim the Bill will reform the rental market. We do not believe it will - it will break it. If the government does not protect property rights, investment is damaged. If investment is damaged, growth is hit. It is painfully clear to anyone who understands markets that the Bill will act as a powerful disincentive for anyone to rent out their property.”

Flawed

Badenoch said although the Tories appreciated their previous Renters’ Reform Bill was flawed, they had recognised the “practical effect of its provisions” and that it would not have come into full effect until the courts were ready.

“When the problems of protracted litigation in the courts are combined with the new, extended and highly convoluted notice requirements for recovering a property where the tenant has not paid the rent, a landlord whose tenant is in arrears will face many months of uncertainty and cost,” she added.

Badenoch said that if the government wanted to help renters, it should drive up housing supply and reduce immigration as some 80% of recent migrants had moved into the PRS, creating a demand the sector could not cope with.

“They need to enforce existing rules against the bad landlords that do not look after their tenants, rather than create new rules that will make the problem worse.”

Reaction

"While the bill addresses important issues for tenants, it’s essential that the reforms maintain a fair balance, ensuring the needs of landlords are also considered. Protecting renters’ rights is crucial, but this shouldn't come at the cost of discouraging landlords from providing much-needed homes, especially as the ongoing shortfall in social housing forces more families into the private rented sector," says Allison Thompson of Leaders Romans Group (pictured).

“The removal of fixed-term tenancies raises questions about whether the reforms will genuinely enhance stability for tenants.

"This is particularly relevant for specific groups, such as students, who may require term-linked periods to ensure appropriate access to student housing. If exceptions aren’t made for these cases, it could create additional challenges for student accommodation.

“Furthermore, we must continue to advocate for court reforms to improve the efficiency and effectiveness of the legal processes for regaining possession when required. Without such improvements, landlords may face extended delays, further impacting the supply of rental homes."