Renters (Reform) Bill – Landlords adopt a ‘wait and see’ approach

Renters (Reform) Bill – Landlords adopt a ‘wait and see’ approach

0:02 AM, 15th April 2024, About 2 months ago 6

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A majority of landlords (62%) plan to hold steady or even expand their rental portfolios in the coming year, despite the looming Renter (Reform) Bill, research suggests.

Leaders Romans Group (LRG) surveyed 630 landlords last month which revealed a ‘wait and see’ mentality.

More than half (55%) of landlords indicated their investment strategies wouldn’t change due to the Bill, pointing to a long-term view of the property market and a reluctance to abandon the private rented sector (PRS).

However, the biggest concern of landlords wasn’t the potential abolition of Section 21 ‘no-fault’ evictions, which worried 54% of landlords.

Instead, it is the Bill to give tenants the right to request pets which caused the most anxiety, with 56% anticipating negative impacts.

‘So-called ‘landlord exodus’ is being overstated’

The firm’s national lettings managing director, Allison Thompson, said: “Although there are some substantial changes in the private rented sector, both political and financial, the so-called ‘landlord exodus’ is being overstated – as this research demonstrates.

“Yes, there are some significant issues with the Renters (Reform) Bill but LRG and others have been actively involved in shaping this legislation so that it is fairer on landlords – who after all, are the mainstay of the property industry and depended upon by government to provide homes to some of those most in need.”

She added: “As local authority housing waiting lists continue to increase, I hope that government will reflect on landlords’ vital role and take their views into account as the legislation passes through Parliament.”

Easier repossession for problematic tenants

The survey highlights that the Bill wasn’t entirely unwelcome with easier repossession for problematic tenants being supported by 63% of landlords.

And 52% expressed approval for the introduction of a letting ombudsman.

Financial pressures, not the Bill itself, appeared to be the primary concern for landlords.

High mortgage rates, increased bureaucracy, rising taxes, and maintenance costs were all highlighted as challenges.


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Comments

Peter

10:21 AM, 15th April 2024, About 2 months ago

If you’re not waiting and seeing, which implies doing nothing, or expanding, then you must be selling. That means 38% of landlords are selling something. To pretend that is not important means that anyone looking at that and thinking all is well is a complete idiot.

38% selling at least one house. I would’ve thought that really is headline news.

Michael Booth

17:35 PM, 15th April 2024, About 2 months ago

Landlords need certainty, if they require there property back they get it back free from mega legal costs.

Cider Drinker

17:49 PM, 15th April 2024, About 2 months ago

I’m not waiting to see.

I’m increasing rents by 15% per year until I reach market rate. If tenants leave, I’m finding a better use for my properties or selling up.

David Nichols

9:37 AM, 16th April 2024, About 2 months ago

The main fear of the RRB is not being able to remove a bad tenant or get our investment back when we really need it. Most of us landlords have good happy long term tenants so there is little risk or point to change a good tenancy or need to panic sell, but when that tenant chooses to move on then many of us will choose to sell rather than relet, so end result the PRS will continue to shrink. If the sales market changes back to a sellers market then many landlords may sell up at that point rather than have an empty property sat in the current stagnant market.

Jim K

12:07 PM, 19th April 2024, About 2 months ago

Reply to the comment left by Cider Drinker at 15/04/2024 - 17:49
Best hurry as in coming Labour Gov't will put a stop to that with 'Rent Stabilisation' or other cleverly named 'Cap'.

Neilt

14:21 PM, 19th April 2024, About 2 months ago

Reply to the comment left by Jim K at 19/04/2024 - 12:07
Too true, everyone seems to be missing that certainty.
Look back in time to the early eighties and beyond. Rent control: each council had a rent officer who could and would simply reverse any unfair increases made by 'greedy landlords'. And rest assured under a left wing gov/council, most increases will be deemed unfair.

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