Renters Rights Act risks damage to London lettings market, say agents

Propertymark is warning the London Assembly, the Greater London Authority and borough councils in the capital of the risks entailed in implementing the Renters Rights Act. 

In a lengthy response to consultation processes launched by local councils in the capital, Propertymark says its members – who manage hundreds of thousands of tenancies across the capital – report that supply remains below pre-pandemic levels, while demand continues to be strong.

The organisation stresses that careful implementation, clear guidance and consistent enforcement will be key to maintaining stability in the market during the transition to the new framework.

Key considerations for London

1. Court capacity and possession timelines

With the removal of Section 21, possession claims will rely on Section 8 routes. London already experiences some of the longest average possession timelines in the country.

Propertymark is encouraging coordinated work with the Ministry of Justice and local courts to ensure sufficient capacity and resources are in place so that cases can be handled efficiently and fairly for both tenants and landlords.

2. Student housing dynamics

London is home to more than 400,000 university students. While new Ground 4A provides a route for regaining possession in Houses in Multiple Occupation (HMOs), smaller student properties fall outside this provision.

Propertymark highlights the importance of monitoring how the reforms interact with London’s academic calendar and student housing cycles, particularly given the capital’s large international student population.

3. Overseas landlord engagement

A significant proportion of London landlords are based overseas and rely on professional managing agents. 

The introduction of the PRS Database and mandatory Landlord Ombudsman membership will require clear communication, practical guidance and accessible systems to support compliance.

Propertymark is calling for early engagement and streamlined processes to ensure smooth registration and ongoing participation.

4. Enforcement consistency across boroughs

London’s 32 boroughs already operate a range of licensing schemes and enforcement approaches. Propertymark recommends:

• A London-wide framework or shared guidance to promote consistency
• An education-led approach for compliant landlords and agents
• Targeted enforcement against rogue operators
• Collaboration with professional bodies to raise standards

Given existing resource pressures within local authorities, coordinated planning will be essential to ensure effective implementation.

Working collaboratively

Propertymark is urging the Greater London Authority and London Councils to:

• Develop a consistent compliance approach across boroughs
• Support professional qualification and standards for letting agents
• Provide updated homelessness guidance following the removal of Section 21
• Closely monitor PRS supply, court performance and rental trends as the reforms bed in

The organisation also recommends that policymakers closely assess the early impact of the legislation in London before considering any additional tenancy or rent control reforms.

Propertymark chief executive Nation Emerson says: “London’s rental market is complex and fast-moving. 

“By recognising the capital’s specific pressures and planning accordingly, policymakers can help ensure the reforms deliver improved standards and security without unintended disruption. 

“We stand ready to work with the London Assembly and boroughs to support a smooth and balanced transition.”

This article is taken from Landlord Today