Renters (Reform) Bill casts shadow over letting agents and landlords

Nearly half of letting agents believe that the worst will happen when the Renters (Reform) Bill is finally introduced, research from Goodlord and Vouch has revealed.

A worrying 43% said they feel either somewhat or very pessimistic about the Renters (Reform) Bill although three in 10 (29%) reported feeling optimistic about the upcoming changes.

INSIGHTS

The full Goodlord and Vouch State of the Lettings Industry report is published next month but initial insights also reveal landlords are also overall feeling pessimistic about the introduction of the new rules too – with one in four (25%) feeling ‘very’ pessimistic and three in 10 (29%) feeling “somewhat pessimistic”.

The Neg reported last September how in last year’s report the abolition of Section 21 had proved a highly contentious area, with the majority of agents and landlords believing the scrapping of Section 21 would have a negative impact.

However, whilst sentiments are still broadly pessimistic, the position of some appears to have softened this year.

Last year seven out of 10 (71%) landlords believed it would have a negative impact but this year the figure has dropped to six out of 10 (62%). At the same time, the number of landlords feeling neutral about the change has risen from around one in 10 (12%) to three in 10 (29%).

OPTIMISM

In contrast, letting agents appear to have lost optimism over the course of the year. In 2022 around three in 10 (27%) agents believed the abolition of Section 21 would have a positive impact but now this number had dropped to just one in 10 (11%).

William Reeve, Goodlord Chief Executive, says: “The insights on the Renters (Reform) Bill show how much change a year can bring and how opinions are continuing to shift as the regulatory picture evolves.”

As well as exploring how agents are feeling about the Renters (Reform) Bill the State of the Lettings Industry report looks at landlord considerations around reducing their portfolios; how the industry feels about EPCs;letting agents’ approach the future and how tenants are coping with cost of living challenges.

Sign up to receive early access to the report HERE.