The UK’s largest listed residential landlord Grainger has praised the government’s new Renters’ Rights Bill, which was presented in Parliament on Wednesday.
If approved, the bill would introduce a range of measures aimed at balancing the scales between tenants and landlords, as the government pledges to “clean up the mess” left in the rental market by the Conservatives.
Grainger, which has seen its profits soar in recent years thanks to the growing demand for rental properties in the UK, expressed its support for the bill, especially the abolition of ‘no-fault’ evictions, a key element of the proposals.
The company, which was involved with writing the draft bill, also welcomed the fact that the new proposals did not impose rent control, meaning landlords could continue to “review rents annually and set them in line with the open market”.
In a statement published on the London Stock Exchange on Thursday morning, the company said: “Grainger welcomes the UK Government’s Renters’ Rights Bill, presented yesterday in Parliament, and its ambition of raising standards in the rental market.
“As the country’s leading responsible landlord, Grainger has been calling for and championing better rental standards for renters for many years.
“While the Renters’ Rights Bill aims to raise standards in the private rented sector, it does not include rent controls, a mechanism that has proven detrimental to renters when implemented elsewhere.
“The draft legislation will now go through the Parliamentary process of scrutiny and debate over the coming weeks and months.”
Industry response to the Renters’ Rights Bill, especially the planned removal of Section 21 “no-fault” evictions, has so far been varied.
While there has been widespread support for enhancing tenant rights, some landlords have expressed concern that the changes could backfire, leading to a contraction in the rental property market.
Critics warn that fewer landlords may lead to increased rental prices.
There has also been concerns about the strain on the courts, as eviction cases may rise under the new system.