Rental reform needs hard data to be effective, insists PropTech player

Rental reform needs hard data to be effective, insists PropTech player


Todays other news

A report from an influential committee of MPs cites survey data from PropTech player Reapit on arrears and evictions.

It revealed that almost 70% of property professionals surveyed by Reapit issued Section 21 eviction notices due to rent arrears. 

The company added in its recent submission to the Commons Public Accounts Committee that failure to raise Local Housing Allowance rates in line with local rental prices means that tenants receiving the LHA face significant affordability gaps, which could lead to arrears, evictions and homelessness.

Reapit’s evidence also highlighted broader concerns about the shrinking PRS. 

The company’s 2024 survey report revealed that more landlords are selling rental properties than purchasing them, which could lead to a decline in available rental stock. Only 11.9% of properties sold by landlords were bought by other landlords, compared to the 54.5% of landlords who are selling properties. 

This reduction in supply will result in higher rents, making affordability an even greater challenge for tenants reliant on LHA.

Reapit’s commercial director Neil Cobbold says: “Having access to the relevant data can shine a light on the realities in the PRS that should drive change, such as the fact that arrears are far more likely to be the reason for a Section 21 eviction, and not ulterior motives, as some suspect. It’s crucial that the industry continues to work with government to drive meaningful change.

“Without significant court reforms to reduce delays in eviction cases, we feel the current Renters’ Rights Bill will make the affordability situation for tenants worse, as landlords appear to be selling in reaction to the legislation, leaving tenants with less choice and higher rents.

“What we really need is a joined-up strategy across government departments to stabilise the PRS. This includes credible court reforms to restore landlord confidence, measures to bring vacant properties back into use, and ensuring housing benefit calculations reflect real-time rent prices.

“Without these changes, tenants across the UK will continue to struggle with rising rents due to housing shortages, and landlords will shoulder increased risk from being unable to recover properties when necessary.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Subscribe to comments
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
A consultation document is being released today....
Does the Landlord and tenant Act 1954 need bringing up...
The Renters Rights Bill is likely to become law this...
A PropTech innovation allows leads to be responded to, literally...
The Welsh Government is backing the call for a 'compensation'...
There will be a series of leasehold reforms announced in...
Recommended for you
Latest Features
A consultation document is being released today....
Propertymark says an audit can take stress out of HMRC...
There are 48 units in this grade II listed block...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...
0
Would love your thoughts, please comment.x
()
x

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here