The National Residential Landlords Association (NRLA) has drawn attention to a Ministry of Housing, Communities and Local Government impact assessment for the Renters’ Rights Bill that estimates the net cost to businesses at a total £33m a year.

The NRLA highlighted the government’s estimate that landlords would face an annual cost of £12 per rented property, while agents would incur £1,700 per year.

The NRLA also pointed to the document’s estimate that the main costs – excluding Awaab’s Law and the Decent Homes Standard – fall on landlords, although it argues there will also be a gross benefit of £9 per rented property per year to landlords, coming from a reduction in letting agents’ fees.

The NRLA has argued changes will impact supply, with evidence suggesting some landlords are already leaving the sector and even more planning to do so over the next 12 months.

However, while the government document does highlight a reduction in supply as a ‘risk’, it does not expect a significant impact.

It states: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.

“The available evidence to date does not suggest that similar reforms to abolish section 21 in Scotland have negatively impacted supply, nor changes introduced by the 2019 Tenant Fees Act, despite concerns they would.

“The most recent English Housing Survey data shows the proportion of PRS households has remained relatively stable since 2013-14, suggesting that there have been no significant impacts on supply to the sector from various reforms.”

It also states that those landlords facing the greatest costs as a result of the new measures will be the ones currently providing the poorest service to their tenants.