Landlords and agents increasingly pessimistic about the PRS

New findings from the Goodlord and Vouch ‘State of the Lettings Industry Report 2024’ paint a grim picture for the private rented sector (PRS).

It reveals that more than half of landlords and agents surveyed expressed pessimism about the future of the market.

They point to upcoming legislative changes, economic uncertainty and a growing sense of unease.

State of the Lettings Industry

The chief executive of Goodlord, William Reeve, said: “This year’s State of the Lettings Industry report comes at an absolutely critical time.

“There’s a new government, a major piece of rental sector reform is soon to hit the statute books, and we are experiencing the most acute housing crisis in a generation.”

He added: “As the initial data shows, this combination of factors is engendering wide-ranging pessimism and concern across the industry, and the imbalance between supply and demand looks set to get worse, not better.”

‘Overview of sentiment across the PRS’

The report, which is published next week, is based on the views of more than 1,500 landlords, letting agents and tenants.

It provides a comprehensive overview of sentiment across the PRS, covering topics such as the landlord exodus, tenant finances, pets in lets and tenants overbidding.

One of the key findings is a hardening of sentiment towards the scrapping of Section 21 ‘no-fault’ evictions.

The number of agents who believe this legislation would have a negative impact on the sector has risen from 56% last year to 70% this year.

The Renters’ Rights Bill, which is set to ban ‘no-fault’ evictions, is expected to pass early next year – and become law by the summer.

‘Snapshot of an industry’

Tom Goodlord, the managing director at Vouch, said: “This report is a snapshot of an industry handling a huge amount of change and pressure.

“As the full survey results will show, the PRS is feeling the weight of this mounting set of challenges.”

He adds: “There are opportunities available to address them, but time is of the essence.”

Introduction of mandatory periodic tenancies

Another contentious issue among those who were questioned is the introduction of mandatory periodic tenancies.

While landlords and agents oppose this move, the survey also reveals a lack of widespread support among tenants.

Most tenants (58.5%) prefer fixed-term, renewable tenancy agreements, while only a third (30%) favour rolling, open-ended agreements.

However, just 15% of tenants report feeling ‘trapped’ by a fixed-term tenancy, which suggests that the perceived benefits of mandatory periodic tenancies may not meet tenants’ preferences.