Sean Hooker, Head of the Property Redress Scheme, delves into the government's timelines and plans for rental reform.
After the hype and the expectation, all has gone quiet on the Parliamentary front with the Renters (Reform) Bill. Despite the government stating renters reform is a priority, they have still not allocated a date for the next stage of the bill’s Parliamentary passage. Frankly, I'm beginning to think the whole thing has been a mirage or sleight of hand in order to appear to be doing something.
Of course, unforeseen matters come up. Debating the urgent issue of what to do with the looming mortgage crisis or pushing forward the building safety legislation, six years since Grenfell, are important concerns to our sector.
However, do political leaders realise that any successful market needs stability, certainty and the ability to plan ahead to future proof themselves and their customers? They are being told, but like rabbits in the headlights, they appear frozen in fear.
A time of change - with no clear timeline
There appears to be very little new to report. Far from being able to relax, people in the sector, like me, are even more in demand. My diary is even more packed with engagements and requests for my views and opinions with people desperate to know what is happening.
I therefore have reverted to my pre-bill mantra that nothing has changed as of yet. Nothing will change for a while but don’t ask me when. Some of the changes are light on detail and we need to know more. And, yes, all of the changes could change. Heraclitus was right; change is the only constant in life.
Expertise is in demand
So, this is what most of June has been for me: meetings, webinars and conferences. Whilst up until recently, I could hide behind a webcam and do this from the comfort of my office, most of the activity I have done this month have been in person.
Although they have mainly been in London, I have hammered the Oyster card and racked up the miles. Of course, I have also my regular commitments for my day job and also things like this blog for Goodlord.
More questions than answers
Last month, I wanted to highlight the concerns the sector had with the proposed pet provisions in the bill and so this month the spot light falls on the implication for student lets.
I was asked to do a webinar for Goodlord, hosted by Oli Sherlock and also featuring Glenn Perry, founder of Zest Property. Needless to say, the session was hugely attended and the questions came thick and fast.
I can only say the panel tried to answer the concerns but the reality is there are more questions than answers.
The only consolation on this part of the bill, is that the government has said it will consider changes to ensure this unique market is not adversely affected.
However, the sector is likely to be north of two hundred thousand properties short of demand in English university towns and cities this year. The warning signs are all there.
Solutions for student lets
I will leave you to watch or listen to the webinar and podcast yourselves. However, while we know that the proposed changes will impact the student market, the main question will be to what degree.
The sector is very innovative and resilient, and the extent of the problem may not be as bad as predicted.
Most students will occupy their student accommodation for that purpose and dutifully leave at the end of the year as intended - rather than continue to squat in the property sticking two fingers up at their faux Russian landlord, Young Ones style.
I also wonder if the simplest thing to solve the issues of obtaining vacant possession of a student property at the end of an academic year is to create a mandatory ground under Section 8. Is that too easy? Am I heading for a first-class honour with that one or will I be sent down in disgrace?
Only time will tell. I don't want to lecture the government or teach it how to suck non-existent eggs. However, from the reactions of the attendees on the webinar, the government is barely scrapping a pass on the current showing.
Entropy and chaos
We are now at a very delicate junction in the private rented sector reform agenda. The cat is out of Schrodinger's box and, the longer this lack of action continues, the reality will be a marketplace where entropy and chaos reigns supreme.
Action needs to be taken now and the bill, in whatever form, brought forward and completed. We cannot wait another term or semester - but I fear this is what will happen.
If the changes graduate unchanged, they will have the unforeseen consequences predicted. If they drop out and don’t happen, there will be a new willing undergraduate waiting in the wings in eager anticipation to publish their paper and grab the honours.
