Six in 10 tenants back Renters’ Rights Act protections

Six in 10 tenants say they understand the Renters’ Rights Act and what it is meant to do, a sharp rise since the bill became law this month.

Barclays’ Property Insights says awareness among tenants has risen from 19% in October to 60% since the Act came into effect.

Plus, 62% believe it will improve their housing conditions and protections.

Barclays also found that 61% of renters believe the legislation will make it easier to challenge their landlord, compared with 28% in October.

RRA impact on PRS

Barclays’ head of mortgages, Jatin Patel, said: “As deposit challenges persist, the measures of the Renters’ Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder.

“However, the longer-term impacts on rental housing remain to be seen, as homeowners weigh up investment in bricks and mortar against other asset classes.”

He added: “For most, property is about far more than finances.

“It provides stability and plays a key role in family legacy, and many retirees do not need to supplement their income through property.

“‘Right-sizing’ still has an important part to play in unlocking housing supply, but it will only gain traction if there are clear and meaningful incentives.”

Tenant behaviour has changed

The Act is already affecting tenant behaviour and one in five renters (19%), said they are now more likely to remain in their current home because of the reforms.

However, concern about the longer-term effect on rents has almost doubled.

In October, 24% of renters feared the restrictions on evictions and bidding wars could push rents higher. That figure has now risen to 45%.

The same proportion (45%), are worried that the reforms could encourage landlords to leave the market, reducing the supply of homes to rent.

Homeowners consider buying

Barclays also found caution among existing homeowners considering further property investment.

One in 10 homeowners (11%), said they were considering buying an additional property within the next two years, but 22% said they would like to own another property and felt it was unaffordable.

Running costs were the most common barrier, cited by 28% of homeowners.

A further 24% pointed to the time needed to manage a property, while 21% highlighted stamp duty costs.