Landlords and tenants unprepared for Renters’ Rights Act

More than four in 10 landlords and nearly two thirds of tenants say they are not confident about what will change when the Renters’ Rights Act comes into force, research reveals.

The figures from Leaders Romans Group indicate that while awareness is high, understanding is not.

Just 5% of landlords say they are very confident about what will change.

Among tenants, the figure is slightly higher at 9%, although fewer than one in four describe themselves as ‘fairly confident’.

Biggest PRS change

Allison Thompson, the chief lettings officer at Leaders, said: “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.

“Landlords are right to lean on their agents, and we’re well placed to help them through every step.”

She added: “But tenants need support too.

“A law designed to give renters more security only works if renters actually understand what it means for them.”

Changes for tenants

The firm’s latest lettings report, based on a survey across England and Wales, also found that 48% of landlords point to losing control of outcomes.

That reflects the unease around the shift to periodic tenancies and how landlords will manage properties under the new framework.

However, half of tenants point to affordability as their main concern, while 41% say they are worried about understanding new processes.

Around 24% of tenants say they expect to remain in their current home for longer once tenancies become periodic.

At the same time, 50% say the rules will influence how they choose their next home, suggesting the legislation is feeding into decision-making before it is fully in force.

Professional support for landlords

For landlords, there is a clear leaning towards agents with two-thirds saying they want their agent to handle the changes required.

That includes the move to periodic tenancies and underlines a growing reliance on professional support as the deadline approaches.

Nearly two-thirds of landlords surveyed expect supply to tighten further over the next 12 months.