In a comprehensive survey conducted by Leaders Roman Group (LRG), landlords across England have expressed greater anxiety over financial burdens rather than the impending Renters (Reform) Bill. The survey, which included responses from 630 landlords, highlighted pressing issues such as soaring mortgage rates, increasing regulatory costs, elevated taxes, service charges, maintenance expenses, and VAT on contractors’ fees.
LRG, which operates several brands including Acorn, Gibbs Gillespie, Leaders, and Romans, aimed to capture the sentiments of landlords regarding the proposed legislative changes and potential sector improvements.
The findings indicate a predominant concern for financial stability among landlords. In light of this, many are advocating for policies to enforce tenant financial accountability.
A significant point of contention is the debate over Section 21. The survey shows that 42% of landlords regard this provision, which allows for no-fault evictions, as vital for maintaining operational flexibility. “Good tenants have nothing to fear by retaining it – the system has been self-regulating for years,” commented one landlord, underscoring the belief that Section 21 supports market equilibrium.
Landlords stressed that negative media portrayals often stem from the actions of a small fraction of rogue landlords, arguing that responsible landlords stand to gain from improved oversight and regulation. “Good landlords are rarely mentioned in the press, so better oversight may increase understanding of the reality of being a landlord, especially the better ones. Poor tenants need recognition as the real issue; they are much like poor landlords in this regard,” said one respondent.
Another landlord echoed a similar sentiment: “I believe the Bill is generally designed to target ‘bad’ landlords, and therefore, I do not believe it will have a great impact on myself. It encourages both tenants and landlords to be responsible, which is beneficial.”
The survey revealed strong support for linking tenant arrears to credit ratings, with 70% of landlords backing this measure to promote tenant accountability. “Rent arrears should affect a tenant’s credit rating,” one landlord stated, advocating for tools to ensure tenants meet their financial obligations. Another concurred: “Credit checks to protect landlords are essential; bad tenants need to be identified.”
Additionally, 45% of landlords support establishing a tenant register to track those with histories of arrears or property damage. “Having had one bad tenant, I think a register would be beneficial so future landlords could be aware of previous issues,” one landlord noted, while another criticized the current system as “too slow and not fit for purpose.”
The survey also indicated broad approval (61%) for a dedicated housing court to expedite landlord-tenant disputes. “Having a separate court would speed up the process involved,” one landlord suggested, calling for a streamlined legal framework to handle property disputes more efficiently.
Alison Thompson, national lettings managing director at LRG, emphasized the importance of these insights. “With 70% of landlords calling for tenant arrears to impact credit ratings and 61% pushing for streamlined legal proceedings, there’s a clear mandate for reform that addresses landlords’ concerns while fostering a fair housing market,” she remarked.
The survey underscores a significant call for reforms that balance landlords’ financial stability with tenant accountability, aiming to create a more equitable and efficient housing sector.