Landlords overhaul businesses as Renters’ Rights Act takes effect

Almost every landlord has changed the way they operate following the recent Renters’ Rights Act reforms, while more than a third are considering leaving the sector altogether, according to Aviva.

Its research found that 94% of landlords had altered their business practices with changes ranging from spending on properties to rewriting agreements and reviewing entire portfolios.

Property improvements were reported by 35% of landlords, while 34% had strengthened compliance or reporting procedures.

A further 33% had revised tenancy agreements or policies, and 31% had changed their approach to setting rents or managing their property strategy.

Landlords are investing

The landlord insurance firm’s managing director of SME, Rebecca Gambrell, said: “Our research shows landlords are responding to significant change across the rental sector.

“Many are investing in their properties, updating processes and adapting their businesses to reflect evolving requirements.”

She added: “While most landlords feel confident in their understanding of regulation, the findings suggest many are continuing to navigate a rapidly evolving landscape.

“As reforms bed in, access to clear information and practical support will be important in helping landlords make informed decisions about their businesses and investments.”

Landlord licensing compliance

Aviva’s research also found that landlord licensing, compliance and enforcement requirements were cited by 45% of respondents as having an impact.

That figure matches the 45% who pointed to environmental and energy-efficiency rules.

Health and safety requirements and building standards were identified by 44%, while 42% referred to changes involving tenants’ rights and protections.

Researchers also found that regulatory changes were affecting longer-term decisions about whether landlords remain in the sector.

Some 39% said they were considering reducing the size of their portfolios, while 34% said the reforms had influenced them to consider leaving the market completely.

At the same time, 95% of landlords said they were confident in their understanding of regulation.

However, landlords raised concerns about keeping pace with further changes, avoiding non-compliance and understanding how new requirements apply in practice.