Blenkin & Co prepares for change as Renters' Rights Bill looms
As the Renters' Rights Bill progresses through the House of Lords, the lettings industry is preparing for major changes that promise to offer renters increased security, while posing new challenges for landlords and agents alike.
For York estate agent Blenkin & Co, which has more than 50 managed properties across Yorkshire, these changes are already sparking shifts in how it operates.
Managing director Edward Hartshorne says: "When we set up the business we saw an opportunity in the market so a lot of the technology and processes we set up have had a lot of this new legislation in mind.”
When it set up its lettings division two and a half years ago, Blenkin & Co understood that change was coming—and it was prepared to lead the way.
The Renters’ Rights Bill reached a critical milestone in February this year, with its second reading in the House of Lords.
The legislation is set to bring major reforms, including an end to ‘no fault’ evictions, protection for tenants with pets or those on benefits, and the replacement of assured shorthold tenancy agreements with periodic tenancies.
While these changes are largely welcomed by renters, they’re creating uncertainty for landlords, many of whom are already struggling with rising costs and tighter regulations. There are also fears that while the new rules should improve standards, they could also lead to higher rents and a shrinking pool of landlords.
The number of private rental properties has already declined. According to Zoopla’s Rental Market Report: September 2024, there is an average of 21 people competing for every rental property, more than double pre-pandemic levels.
Blenkin & Co has invested heavily in technology to ensure the rental process is smooth and secure for tenants and landlords alike. "We are beyond where other agents are going with our referencing," says Blenkin & Co’s lettings manager, Jennifer Marsden.
Blenkin & Co has also made strategic decisions, like eliminating the renewals phase and accepting tenants with pets, to stay ahead of the legislative changes.
These proactive steps, Jennifer believes, will not only protect the business but ensure they remain competitive in a rapidly changing market.
"We’re building a business that will thrive long term," she says. "The changes will lead to higher quality rental stock, and that’s something we’re excited to be a part of."
In response to the challenges ahead, Blenkin & Co is expanding its lettings department. It recently appointed Richard Waterton from Foxtons in London, a move it says that reflects its commitment to the growing demand for professional, qualified management of rental properties.
"Lettings is no longer for the unqualified or unprepared," says Edward. "The industry is shifting, and we’re making sure we’re ready for what’s coming."
However, not all agents are as prepared for what is to come.
Data gathered by professional body Propertymark suggests that 50 per cent of surveyed property agents are concerned about the Renters’ Rights Bill.
Edward says: “We don’t see much activity from other agents towards this and I do think it’s going to hit them like a tonne of bricks but, turn, the landlords are then going to be exposed, which is the perfect storm.”
Jennifer adds: "I think there’s a lot of confusion out there at all levels. It doesn’t help that in the majority of lettings businesses there’s a high turnover of staff and most agencies aren’t spending enough time or money on training and developing them.”
The government’s latest amendments to the bill include limits on how much rent a landlord can request upfront.
"This has been an interesting gamechanger for us,” says Edward. “We let a property last autumn to an ex-pat returning from the Middle East on a significant salary and they wouldn’t have been able to rent a house under normal referencing rules.
"The way we got around that was they paid 12 months in advance. That wouldn’t be allowed under the new rules.
"People who have found themselves bankrupt after businesses have gone under, who have had to sell houses and found themselves having to go into rented housing, they aren’t passing any standard referencing checks. The only way they can get in is by paying in advance on a rolling scale.”
He adds: If people are kicked out of the system, where on earth are they going to live?
"It’s easy for us to talk about the ins and outs of the legislation but it’s people’s lives and that’s the scary thing.”