The Department of Levelling Up, Housing and Communities has delayed the Rental Reform White Paper until next year.
The paper was set to be introduced in autumn, but the government said the delay will allow it to produce a “balanced package of reforms.”
Speaking at the Conservative party conference, Housing Minister Eddie Hughes suggested that his teams were still in discussions to avoid what he called “unintentional consequences.”
Prior to the delay, the government was criticised by Shelter and Generation Rent for what they claimed to be slow work on scrapping Section 21 evictions.
Tom Mundy, chief operating officer of Goodlord, said: “Letting agents may be frustrated by further delays to the Rental Reform White Paper proposal.
“The continued uncertainty could be preventing landlords from entering the market or expanding their portfolios, at a time when rental stock is very low, leaving the industry in limbo.
“Letting agents will be very keen to know what the new legislative landscape will look like, so they can advise their landlords accordingly.
“The market is split when it comes to key proposed changes, such as the Abolition of Section 21. 54% of tenants think it will have a positive impact compared to only 22% of agents, according to our latest market survey.
“So whenever the bill does come into force, there’s no doubt it will trigger significant shifts across the industry.”