A majority of landlords in England say they are unready for the sweeping changes set to be introduced under the Renters’ Rights Bill, according to new research.
Just 16 per cent of landlords describe themselves as “fully prepared” for the legislation, which is due to clear its final parliamentary stages next week before becoming law. The survey of 1,001 landlords, commissioned by estate and lettings agency Cavendish, found that 84 per cent remain uncertain about the details or implications of the Bill.
Seven per cent admitted they had not heard of the Bill at all, while 29 per cent said they were aware of it but did not know what it meant for them. A further 16 per cent reported knowing very little about it, and 32 per cent said they had a general understanding but still had unanswered questions.
The legislation represents one of the most significant overhauls of the private rented sector in decades. It seeks to give tenants greater security and protections by banning Section 21 “no-fault” evictions, ending fixed-term tenancies in favour of periodic agreements, and tightening rules on rent increases.
Under the reforms, landlords will only be permitted to raise rents once a year and must issue tenants with two months’ notice using a Section 13 notice. Any increases deemed excessive may be challenged by tenants at a First-tier Tribunal, which will determine the market rate.
The Bill also introduces tougher financial penalties for non-compliance, with civil fines starting at £7,000 and rising to as much as £40,000. Other provisions include measures to prevent landlords from unreasonably refusing tenants’ requests to keep pets.
Commenting on the findings, David Adams, Managing Director of Cavendish and author of The Landlord’s Playbook, warned that landlords risk significant financial and reputational damage if they are not prepared.
“The changes being introduced are some of the most impactful in decades,” he said. “The potential cost of falling foul of the new legislation is enormous. While we have been supporting landlords with guidance and webinars, our survey shows that the vast majority are not yet ready. Being fully prepared is the only way forward if landlords want to protect and grow their rental portfolios.”
The Bill is scheduled to return to the House of Commons and the House of Lords on 8 September for final amendments and approval. Once it receives Royal Assent, it will become law.