Letting agents are unprepared for rental reform – poll

Letting agents are woefully underprepared for the impending shift to periodic tenancies under the Renters (Reform) Bill, according to a new survey by Goodlord.

Despite the significant changes the legislation will bring, just 2% of agencies have started to adapt their tenancy structures.

The snap survey of 129 agents revealed a worrying lack of action, with more than half (57%) having taken no steps to prepare for the new rules.

And while 30% have begun considering the necessary changes, they haven’t yet implemented any concrete measures.

‘Letting agents don’t feel equipped for rental reform’

The firm’s managing director, Oli Sherlock, said: “It is not surprising that the majority of letting agents don’t feel equipped for rental reform.

“Despite the Bill taking so long to reach this stage, it still somehow feels rushed and, in certain areas, fails to meet the original purpose it set out to achieve.

“With little certainty on timings of both the commencement date and subsequent timings for provisions, thereafter, letting agents will continue to be in somewhat of a limbo.”

He added: “What is clear is that the impending changes are not simple, and landlords will require the professionalism of letting now more than ever before.”

Critical information gap within the industry

This widespread inaction points towards a critical information gap within the industry – not helped by the lack of details and timeline of the Renters (Reform) Bill.

Goodlord says agents are struggling to navigate the practical implications of the ‘ever-changing’ upcoming changes.

It says that moving to periodic tenancies will mean a range of operational changes will be necessary from letting agents – from contract updates to the introduction of new procedures around rent reviews.

With the potential for the new legislation to be implemented within weeks, the firm says the industry urgently needs clear and comprehensive guidance to ensure a smooth transition to the new system of periodic tenancies.