Landlords and tenants unaware of the impending Renters (Reform) Bill
While the Renters (Reform) Bill is a controversial piece of legislation, a study reveals that the majority of landlords don't know what is in it - and neither do tenants.
The Bill will have a huge impact on the private rented sector (PRS) in England, including the ending of fixed-term tenancies and the abolition of Section 21 'no-fault' evictions.
According to Propertymark's research, only one in five (18%) landlords said they understood the Bill - but 20% said they didn't.
A further 61% didn't agree or disagree, which means an astonishing 81% of landlords in England's PRS don't know about the Bill or its impact on their business.
'81% of landlords were not confident that they understood the Bill'
In its report, Propertymark states: "This suggests that 81% of landlords were not confident that they understood the Bill or at the very least, were not entirely confident.
"This is alarming but not unexpected given that 77% of landlords hadn't read or had only partially read the guidance."
It goes on: "This raises questions regarding the robustness of the Bill's communication and consultation process and the extent to which landlords proactively engage with legislation.
"Regardless, it does not bode well for future implementation and compliance."
Will provide professional assistance to landlords
Should the Bill become law, Propertymark is reassuring its members that it will provide professional assistance to landlords for its implementation and compliance.
However, there are concerns about whether the government will provide additional guidance and if any support it offers will be enough for self-managing landlords.
The body for letting agents says: "As it stands, the Bill necessitates a range of changes which will fundamentally alter how the sector operates.
"Change on this scale can cause uncertainty and this can lead to worry and resistance."
What is in the Renters (Reform) Bill
Meanwhile, separate research reveals that the situation for tenants' understanding of what is in the Renters (Reform) Bill isn't much better.
That's because a study has found that four out of five renters are oblivious to the proposals.
This data comes from TDS Charitable Foundation which questioned more than 2,000 private renters.
The organisation aims to promote education about housing rights and obligations in the private rented sector.
But despite a 27% increase in understanding of the reforms over the past year, a significant 83% of tenants remain uninformed about the Bill’s proposals.
This is regardless of 69% of renters saying that sector reform is overdue.
Renters said it would enhance tenant rights
When given details of the Bill, the survey found 61% of renters say it would enhance tenant rights.
The proposed abolition of section 21 'no-fault' evictions saw 60% of renters agree security and stability would be boosted in the PRS.
The prospect of a new Ombudsman being created for private landlords saw 40% of tenants admit wanting to engage with the new body.
The research also found that a considerable number of tenants doubt whether the Bill would be implemented or even deliver change.
When asked, 42% of respondents stated very little would change in the PRS, and 37% said they didn't believe the Bill would become law.
The head of policy and research at TDS Group, Dr Jennifer Harris, said: "The Bill represents the biggest set of changes to the rental market for over 30 years.
"Given this, it is worrying that so many tenants are unaware of what it is and what it seeks to achieve."
She adds: "It is vital that tenants feel able to challenge the minority of landlords failing to provide safe housing or a good enough service.
"This can only be achieved by ensuring renters understand the changes being made and are confident that they will help them to do so."
'Changes that will come to the PRS under the Renters (Reform) Bill'
Simon Thompson, the managing director of Accommodation for Students, said: "It's hard to believe that the significant changes that will come to the PRS under the Renters (Reform) Bill are largely unknown among both landlords and tenants.
"This lack of awareness, particularly among landlords, raises concerns about the future implementation and compliance of the Bill.
"While professional support is promised by organisations like Propertymark, I have doubts about how self-managing landlords will cope."
He added: "The news that 83% of tenants don't know about the Bill also undermines the calls from Shelter and Generation Rent that tenants are crying out for the new law.
"It turns out that they aren't - which isn't really a surprise."
More information
Propertymark’s research is in the report: 'Reforming the PRS: landlord views of the Renters (Reform) Bill'.
