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0:02 AM, 20th September 2023, About 8 months ago
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Most letting agents are against the proposed changes in the Renters (Reform) Bill and want to have their say, a survey reveals.
The findings from PayProp UK found that 62% of respondents viewed the Bill negatively, while only 4.4% felt positive about it.
The automated rental payment specialist also reveals that agents fear the law will hurt their business and the private rented sector (PRS) as a whole.
Almost all respondents (96%) believe that the Bill would cause more landlords to exit the market, while 94% thought that fewer properties would be available, resulting in higher rents for tenants.
PayProp’s managing director, Neil Cobbold, said: “While tenant lobby groups and landlord representatives have been vocal about the wide-ranging impact of these reforms, one group that will be significantly affected by the changes have yet to be comprehensively consulted by government – lettings professionals.
“We know how valuable their feedback will be to getting these reforms right, so we put together this survey and report to give them the opportunity to voice their feelings on the proposed changes.”
The Bill, which was announced in 2019, proposes to abolish Section 21 evictions – also known as ‘no-fault’ evictions – end fixed-term tenancies in favour of periodic tenancies and broaden the scope of Section 8 evictions.
There will also be a new private sector ombudsman, rules to make it easier for tenants to keep pets and give tenants the right to appeal rent increases.
The survey showed that lettings professionals are opposed to the abolition of Section 21 evictions, with 78% against the measure and just 5% in favour of it.
They also expressed negative views on the ending of fixed-term tenancies (76%) and making it easier for tenants to keep pets (48%).
However, agents are more supportive of the plan to broaden the scope of Section 8 evictions (70%) and create a new private sector ombudsman (53%).
They were divided on giving tenants the right to appeal rent increases, with 50% neutral on the issue, 34% opposed to it and 16% in favour.
And a clear majority (73%) of agents believe the proposals in the Bill will have a significant, or very significant, impact on their business, with the abolition of Section 21 causing them most concern, followed by the ending of fixed-term tenancies.
Mr Cobbold said: “Overall, there are worries over the increased workload to comply with the new rules, the cost of training to get to grips with them, and a loss of income from fees associated with tenants moving.
“However, 83% of the letting professionals we surveyed are confident that they can master the new regulations and help landlords comply.”
He adds: “Across all roles within the PRS, agents are concerned that more landlords will sell their buy-to-let properties, thereby restricting tenant choice and driving up prices.”
