Renters' Reform Bill likely to increase pressure on landlords

Despite significantly impacting landlords and tenants in the UK, the proposed Renters' Reform Bill act that's to be voted on before May 2023 is not on the radar of at least 40% of UK landlords, according to new market insight from property bridging finance broker, Finbri.

Related topics:  Landlords,  Tenants,  PRS,  Legislation
Property | Reporter
31st January 2023
Gov 777

Proposed legislation set to be voted on in Spring includes; scrapping section 21 'no fault' evictions, creating a register of landlords, introducing a private rented ombudsman to help enforce renters' rights, making it illegal for landlords and agents to refuse to rent properties to people who receive benefits, and give local authorities more power to enforce and protect renters' rights

How do landlords feel about the proposed measures?

Finbri surveyed over 1,000 UK landlords to discover how they feel about the proposed Bill.

- 47.55% of landlords 'Strongly Concerned' or 'Concerned' that the reform makes it illegal for landlords and agents to refuse to rent properties to people who receive benefits

- 45.45% of landlords 'Strongly Concerned' or 'Concerned' that the reform stops section 21 'no fault' evictions

- 43.86% of landlords 'Strongly Concerned' or 'Concerned' that the reform introduces a private rented ombudsman to help enforce renters' rights

- 42.65% of landlords 'Strongly Concerned' or 'Concerned' that the reform requires landlords to register their property on the new property portal legally

- 41.45% of landlords are 'Strongly Concerned' or 'Concerned' that the reform ensures all tenants have the right to request a pet in their house, which the landlord must consider and cannot unreasonably refuse.

Whilst most responses to the proposed changes demonstrated concern, there are landlords that answered positively about the possible changes to the private rental sector. 35.16% of UK landlords said they were Optimistic (19.68%) or Very Optimistic (15.48%) about the landlord register, whilst 22.18% said they were neither concerned nor optimistic.

What will the impact be on renters?

The Renters' Reform Bill proposes to make renting fairer for tenants and will end 'no-fault eviction,' meaning landlords can no longer evict a tenant without good reason. Additionally, tenants would have increased notice periods for rent increases, thereby giving renters stronger powers to challenge them if they are unjustified.

Finbri surveyed over 1,000 UK renters and discovered 19.38% of tenants have experienced unaffordable increases in rent and a combined 73.93% are either Concerned (37.06%) or Strongly Concerned (36.86%) about rent increases, therefore increased rights over rent increases will be a relief.

Final thoughts

The survey shows 40.83% of landlords are not even aware of the Renters' Reform Bill, and with it set to go into effect in 2023, it is essential that landlords become informed of the proposed changes and act accordingly. There is soon to be an expectation in the UK of a more secure living environment for those who rent and an increased level of protection from unfair practices.

Stephen Clark, from Finbri, comments: “One of the most significant impacts of the Renters' Reform Bill is that landlords will face a significant increase in regulation, with many new requirements and restrictions on their activities.

"As such, there will likely be increased pressure on landlords to ensure they remain compliant with these regulations. Combined with increasing rates, this may increase landlords' likelihood of selling their investment properties. It is possible that these changes could also discourage potential investors from entering the private rental market.”

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