Study apparently shows Renters’ Rights Bill won’t ‘harm the rental market’?

A study into the potential impact of the Renters’ Rights Bill suggests England’s letting agents can adapt and even thrive under the new rules.

The analysis from property software firm, SME Professional, which looked at what happened to Scotland’s PRS after the Private Housing (Tenancies) Act became law in 2016.

It also abolished no-fault evictions, ended fixed-term tenancies and introduced stricter landlord regulations.

The report says that far from harming the industry, the changes boosted letting agents’ businesses.

Changes could boost demand

The firm’s managing director, Fraser Sutherland, said: “The Scottish experience demonstrates that robust tenant protections need not harm the rental market or agency businesses.

“Our customers in England can be reassured that the upcoming reforms may not reduce business opportunities.”

He added: “While regional variations across the UK will no doubt exist – between different regions or between types of landlords – on the whole, Scotland’s experience suggests these changes could actually boost demand for professional services and foster a more stable, well-regulated rental market.”

The chief executive of the Scottish Association of Landlords (SAL), John Blackwood, said: “The growing legislative burden on agents in Scotland has not led to a reduction in managed properties.

“On the contrary, agencies have seen a slight increase in their overall portfolios.

“This trend indicates that, as regulatory requirements have become more complex, many landlords have opted for professional management services and have thereby strengthened agency business.”

PRS expanded after new law

The report says there was a surge in demand from Scottish landlords for professional management services, with more than 60% of landlords raising rents in 2024, up from just 8% previously.

This has driven revenue growth for agents, alongside longer tenancies and a more stable market, the firm says.

Mr Sutherland said: “Fears that tighter regulation would lead to market contraction have not materialised.

“The private rented sector in Scotland expanded significantly following tenants’ rights reforms, with tenancy lengths increasing and landlord satisfaction remaining high.

“Far from triggering an exodus, the new rules have led to greater professionalism and tenant stability.”

The Renters’ Rights Bill is expected to gain Royal Assent in September.