A majority of landlords feel unprepared for the rollout of the Renters’ Rights Act and are increasingly turning to letting agents for guidance, according to new research from Dwelly, the lettings acquisition and planning consultancy.
The landmark legislation – which has now gained Royal Assent – will abolish Section 21 “no-fault” evictions, introduce a national landlord register and replace fixed-term contracts with rolling periodic tenancies.
It also brings new limits on rent increases, stricter notice periods and higher minimum property standards, marking one of the most significant restructurings of the private rented sector in decades.
But despite its scale, many landlords say they are not ready. Dwelly’s survey of landlords in England found that 57% do not feel prepared for the Act’s introduction.
NOT VERY PREPARED
Half said they were “not very prepared” and 7% “not at all prepared”. Just 15% felt “very well prepared”, while 27% described themselves as only somewhat ready.
Months of shifting political timelines and uncertainty are cited as the main reasons for the lack of readiness. Landlords’ top concerns include the abolition of Section 21, the creation of a national register, rules on tenants keeping pets, the shift to periodic tenancies and new limits on rent rises and notice periods.
“Agents are set to play a decisive role.”
As a result, agents are set to play a decisive role. Some 42% of landlords said they will rely on their letting agent to advise on compliance and manage the transition.
However, communication from agents has been mixed: only 23% of landlords said their agent had already provided clear guidance, while 46% said they had received no communication at all.
Although 71% of respondents believe the Government’s decision to stagger implementation will make compliance easier, two-thirds (66%) said official guidance has so far lacked clarity, particularly on timelines.
FINDING CLARITY
Sam Humphreys (main picture, inset), Head of M&A at Dwelly, says that the industry’s uncertainty was unsurprising.
He adds: “While this legislation has been on the radar for years, the constant back-and-forth has made it difficult for the industry to gain clarity, let alone individual landlords. Even now, having gained Royal Assent, there’s still no concrete timeline for implementation.”
And he says that letting agents should be central to managing the transition: “Agents will need to go beyond the day-to-day to provide clarity, guidance and proactive communication.
“At Dwelly, we’re helping agencies strengthen their operational and compliance capabilities so they can confidently lead their landlords through the Renters’ Rights Act and demonstrate their value in a changing market.”
