The UK rental services provider’s managing director Graham Hayward has said, with the bill nearing royal assent, that this will have a “significant impact” on the number of those renting.

As such, he has said accommodation providers will need to shift their funding models in response.

Graham has said this will be manifested in a couple of ways, with providers having less recourse when recovering rent from tenants in default. He has also pointed to the merits of a professional guarantor approach.

“Accommodation providers’ risk appetite is likely to change as a result of the proposed Renters’ Rights Bill, with more seeing riskier overseas personal guarantors as inferior to professional guarantor services,” said Graham.

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“This looks set to drive up demand for professional guarantors — something that we’ve already seen accelerate over the first half of this year and especially for guarantors with strong pay out and settlement rates.”

There are also concerns about how the Renters Rights Bill could impact wider housing supply.

Here, Graham points to the headwinds the bill could provide HMO, PBSA and BTR assets which could in turn dissuade investors.

“Either a revised model or some kind of relief is going to be required to protect investor returns,” concluded Graham.

“The Renters’ Rights Bill is coming home to roost, meaning operators and investors need to reposition their strategies to ensure their models remain workable and robust.”