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17/12/25 3:30 pm
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Complying with the Renters’ Rights Act will be more difficult for landlords who live overseas, the capital’s watchdog has been told.
Propertymark warns that 18% of rental homes in London are owned by overseas landlords who fully rely on letting agents to manage their tenancies but will be expected to join the new PRS Database and Landlord Ombudsman scheme – something a letting agent can’t do on their behalf.
Agents who don’t voluntarily sign up to higher standards might not be aware of the new requirements or will not be sure of them due to conflicting guidance, it says. Overseas landlords are also a lot less likely to be aware of legislative changes or fully understand them due to language challenges.
In response to the London Assembly’s Housing Committee call for evidence on how the Act will operate in the capital, it says higher sector standards would improve compliance with the Act without needing councils to actively inspect properties. It suggests: “Considering the limitations on local authority resources, we would propose that introducing requirements for letting agents to be qualified in London would be a long-term solution and in the short-term requiring them to register with an approved professional body.”
It adds that the Database has the potential to duplicate work and fees for landlords, potentially pushing many out of the PRS or leading to a reduction in landlords signing up, particularly as 60% of local authorities in London have at least one selective licensing scheme, with a further 50% having an additional licensing scheme.
Propertymark also points to “especially overburdened” courts in London, where the average waiting time for an eviction after a possession order has been granted is eight months and the average unpaid rent at the time of eviction is almost £20,000.
“While the Act makes explicit discrimination illegal, landlords and agents with multiple tenants expressing interest can still choose who will live at the property,” it says. “This will risk forcing vulnerable tenants to seek rogue landlords and agents who would provide poorer quality homes and take advantage of the tenants’ vulnerable situation.”
It suggests that efforts to improve security through tenancy reform and powers to control rents should be temporarily paused until a full review of the impact of the Act can be made and calls for councils to agree to a single guide on how to comply and to take steps to ensure any enforcement action is consistent.
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