Less than half (43%) of landlords surveyed said they were fully aware of the Renters’ Rights Bill, including its key elements, and felt prepared for the upcoming changes. Over a fifth (21%) reported either limited knowledge or no awareness of the bill at all.
The uncertainty appears to be influencing broader market behaviour. One in three landlords say they are considering exiting the market at some point, with two-thirds (66%) feeling unsupported by the government. Legislative changes, including new taxation and regulation, were cited as the top frustration by 68% of respondents, driving some to plan reductions in their property portfolios over the next year.
Despite these concerns, the short-term outlook remains relatively stable, according to the research carried out by Rightmove.
Half (51%) of surveyed landlords plan to maintain their current portfolio size over the next twelve months, while 20% are looking to expand. Rising mortgage rates are a factor, with nearly a third (29%) saying higher rates are affecting their expansion plans, and 17% indicating that elevated mortgage costs are prompting them to consider reducing their holdings.
The findings suggest that while long-term uncertainty around the Renters’ Rights Bill and wider legislative changes is weighing on some landlords, many remain committed to maintaining or growing their property portfolios in the near term. For letting agents, this mixed sentiment could influence the market for new tenancies and ongoing property management, highlighting the importance of supporting landlords through the transition.
Rightmove’s Colleen Babcock commented: “The majority of landlords are looking to stay in market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property. Continued high mortgage costs mean that landlords need to make sure that the numbers still add up when investing in rental property. Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration. The government needs to consider this when setting its policy agenda over the next twelve months, otherwise we may see more landlords choose to leave the sector which will be to the detriment of tenants.”
Christian Balshen, Rightmove’s director of agency partnerships, says it is vital that landlords remain compliant with the new legislation.
He commented: “Selecting the right agent to work with, to understand and prepare for the changes, will be crucial. Landlords have always prioritised selecting a reliable tenant who wants to be in their home long-term, so it’s likely they’ll be even more involved in the process of choosing the right tenant for their home with these legislative changes.”
What impact could Renters’ Rights have on letting agents?
Balshen acknowledges that the Renters’ Rights Bill marks a “massive change” in lettings processes, how tenancies are set up and there is a cost to getting it wrong.
He added: “Over the coming weeks, lettings agents have an opportunity to guide and reassure their landlords. There is training and resources available to agents to make them feel confident ensuring their landlords remain compliant. Many landlords will no doubt have a lot of questions for agents, and there is an opportunity for agents to be the expert with the answers.”
Comments (3)
‘Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration. The government needs to consider this when setting its policy agenda over the next twelve months…’ This and previous governments have shown nothing but contempt for the PRS. The RRA will only accelerate the exit, and worsen an already bad situation for tenants.
The 1988 Housing Act liberated the private rental market at a time when there was no shortage of housing and it was assumed that home ownership would be the default tenure of choice alongside social housing if ownership was not an option. Private renting was envisioned as being a stepping stone between living at home and getting your own permanent residence.
With the abject failure to build sufficient housing, the PRS has basically taken over the place of permanent housing provider previously filled by the social sector. The current legislation is the consequence of a lack of housing options for the ordinary person who can neither buy their own place or get state-provided accommodation, but still needs somewhere they can put down roots. Unfortunately, those who provide the service have not been consulted. This was not the deal when we took on the role of time-limited accommodation provider. Anybody who enters the market these days does so knowing the new reality. It is entirely wrong to foist it on those who entered in good faith on different terms. Those who disagree with the new reality will consider their options and many will divest, to the harm of those they currently house.
You are absolutely right, but assume we are viewed by all relevant parties as having ‘rights’ as private sector landlords. We don’t!
Landlords take on a significant personal financial commitment by investing in housing for those who can’t, won’t, or don’t want to buy, and can’t obtain social housing. This is based on a set of rules and regulations, and should afford us the right to use our property as we believe best, provided we don’t abuse those rights. If we do, it’s fair enough we are penalised. There is no place for rogue landlords.
The point to emphasise here is it is OUR property, and the State should not have the right to tell us what we can and can’t do with it.
What has happened over the past 10 years or so is an attack on our basic human rights.