Responding to a written parliamentary question, Pennycook maintained that the reforms are “fit for purpose” — a claim backed by a ‘Green’ rating from the Regulatory Policy Committee.
However, an independent watchdog has challenged the government’s approach, warning that it failed to fully assess the financial impact on landlords.
Pennycook told MPs that responsible landlords “have nothing to fear” and would remain active in the sector despite the changes. He pointed to the government’s official Impact Assessment, published on 22 November 2024, as evidence of the Bill’s sound design.
Housing Minister Matthew Pennycook has sought to reassure landlords over the Renters’ Rights Bill, stating it will give “good landlords the confidence they need to continue to invest and operate in the sector.” He also pointed to long-term stability in the rental market, noting it has “remained broadly stable for more than a decade.”
However, the Regulatory Policy Committee offered a more cautious view. While the Bill received an overall “fit for purpose” rating, the watchdog flagged weaknesses in key areas of the government’s Impact Assessment. Sections covering cost-benefit analysis and broader market implications were rated “weak,” raising concerns about the depth of economic scrutiny behind the reforms.
The RPC sent out a stark warning: “The impact assessment has not adequately considered the potential costs, as well as impact upon the quality of private rental housing, of making the PRS market more illiquid.”
The proposed abolition of Section 21 evictions could dampen investment in the private rental sector, according to the Regulatory Policy Committee (RPC).
Its assessment cautioned that if landlords are unable to reclaim properties or charge market rents, they may “only invest to the minimum regulatory standard” — a shift that could erode housing quality just as demand for affordable homes continues to climb.
The RPC also raised concerns about the financial modelling behind the new Private Rented Sector Ombudsman. It highlighted gaps in staffing cost estimates and a lack of transparency around how fees would be allocated across landlords.
Housing Minister Matthew Pennycook defended the plan, stating that the annual registration fee would be “proportionate and good value.” He added that the Ombudsman would be barred from operating for profit, aiming instead to deliver fair outcomes for both tenants and landlords.
Uncertainty over the financial impact of the Renters’ Rights Bill continues to unsettle landlords. While the legislation requires registration with both the Private Rented Sector (PRS) database and the new ombudsman scheme, it remains unclear whether these processes will be streamlined — or if landlords will be charged separately for each.
This lack of clarity is fuelling concern across the sector. Despite Housing Minister Matthew Pennycook’s assurances that the Bill strikes a fair balance, many landlords see a widening gap between political optimism and regulatory reality.
The Regulatory Policy Committee’s warnings about cost modelling and market impact have amplified long-standing fears: that rising fees and tighter controls could deter new investment and shrink the pool of buy-to-let entrants.