Recent research reveals that a significant proportion of landlords and tenants remain uncertain about the implications of the forthcoming Renters’ Rights Act, despite widespread awareness of the legislation. This uncertainty poses challenges as the private rented sector prepares for what is described as the most substantial change in a generation.
Confidence levels among landlords and tenants
According to data from Leaders Romans Group, more than 40% of landlords and nearly two-thirds of tenants lack confidence in their understanding of the changes the Renters’ Rights Act will bring. Only 5% of landlords feel very confident about the forthcoming changes, while among tenants, this figure is slightly higher at 9%. Less than a quarter of tenants consider themselves fairly confident about the new regulations.
The scale of change in the private rented sector
Allison Thompson, Chief Lettings Officer at Leaders Romans Group, emphasises the significance of the Act, stating, “The Renters’ Rights Act is the biggest change to the private rented sector in a generation, and this data shows that plenty of people still need support getting ready for it.” She highlights the role of letting agents in guiding landlords through the transition, adding, “Landlords are right to lean on their agents, and we’re well placed to help them through every step.”
Thompson also stresses the importance of tenant education: “A law designed to give renters more security only works if renters actually understand what it means for them.”
Key concerns for tenants and landlords
The research identifies affordability as the primary concern for half of the tenants surveyed, with 41% worried about understanding new processes introduced by the Act. Nearly a quarter of tenants expect to stay longer in their current homes once tenancies become periodic, while 50% indicate that the new rules will influence their choice of future homes, suggesting the legislation is already affecting tenant decision-making.
From the landlords’ perspective, 48% express concern about losing control over tenancy outcomes, reflecting unease about the shift to periodic tenancies and the management of properties under the new legal framework. Additionally, nearly two-thirds of landlords anticipate a tightening of supply in the private rented sector over the next year.
What this means for landlords
As the Renters’ Rights Act approaches, landlords are increasingly relying on professional support to navigate the changes. Two-thirds of landlords surveyed prefer their letting agents to manage the adjustments required, including the transition to periodic tenancies. This trend underscores a growing dependence on expert guidance to ensure compliance and effective property management under the new regulations.
Source: Based on reporting from Property118
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Source: www.property118.com
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