In anticipation of the impending Renters (Reform) Bill, insights from a recent study conducted by Goodlord and Vouch shed light on the divided opinions within the letting industry. The research uncovered that nearly half of all letting agents surveyed are bracing for the worst as the bill’s introduction looms on the horizon.
A concerning 43% of letting agents expressed feelings of either mild or significant pessimism regarding the forthcoming Renters (Reform) Bill. However, there is a ray of optimism amidst the uncertainty, as 29% of agents reported feeling hopeful about the impending changes that the bill promises to bring to the rental landscape.
The comprehensive findings of the Goodlord and Vouch State of the Lettings Industry report are set to be unveiled next month. Early insights from the report have also spotlighted the prevailing sentiments among landlords. Notably, a significant portion of landlords also harbour negative expectations regarding the bill, with a quarter (25%) expressing intense pessimism and nearly a third (29%) indicating a more moderate sense of foreboding.
Last September, The Neg reported that the abolition of Section 21, a contentious topic, had sparked considerable debate within the industry. A majority of both agents and landlords had voiced concerns about the potential negative repercussions of scrapping Section 21.
Despite the prevailing atmosphere of cautious pessimism, there are subtle shifts in attitudes this year. In the previous year’s report, a substantial 71% of landlords believed that the abolition of Section 21 would yield negative outcomes. However, this year’s figures show a decline to 62%. Simultaneously, the proportion of landlords adopting a neutral stance on the change has risen from 12% to 29%.
Conversely, letting agents seem to have lost some of their earlier optimism over the course of the year. In 2022, roughly 27% of agents believed that the abolition of Section 21 would have a positive impact. However, this proportion has dwindled to a mere 11% in the present survey.
Reflecting on the survey results, William Reeve, the Chief Executive of Goodlord, remarked, “The insights on the Renters (Reform) Bill show how much change a year can bring and how opinions are continuing to shift as the regulatory picture evolves.”
Beyond the sentiments surrounding the Renters (Reform) Bill, the State of the Lettings Industry report delves into various aspects of the industry. These include landlord perspectives on portfolio reduction, industry attitudes towards Energy Performance Certificates (EPCs), the approach of letting agents towards the future, and how tenants are grappling with the challenges posed by the cost of living. The comprehensive report promises a deeper understanding of the current landscape in the dynamic realm of letting.