Although nearly nine in ten (89%) of letting agents claim they are ready for the Renters’ Rights Act, less than two-thirds (61%) say they feel prepared to handle the new eviction processes after section 21 is abolished on May 1.
Under the new legislation, tenants will have increased powers to remain in a property and landlords must use legal and evidenced grounds to evict them, rather than the no-fault process available to them before.
The findings are from a survey of 2,650 landlords, letting agents and tenants by Goodlord and form part of a larger report titled ‘Is Renting Broken?’.
One fifth of agents to leave lettings within five years
Letting agents also face an exit of talent after a snap poll of letting agency leaders at its recent Goodlord Leaders’ Forum in central London, showed a third (33%) of letting agents in the audience said they believed the RRA would be bad for business, Meanwhile, a fifth (18%) admitted they didn’t expect to be working in lettings in five years’ time.
Tom Goodman, managing director at the Goodlord Group, said: “The data on agents is telling. While confidence levels appear high on the surface, the gap between perceived readiness and operational capability – particularly around complex areas like evictions – highlights a clear need for more support. What’s critical now is ensuring the industry has the clarity, tools, and guidance it needs to navigate the transition with confidence.”
An opportunity for letting agents?
However, the larger survey also showed that four in five landlords (82%) are concerned about the impact of the Renters’ Rights Act, with one in two (44%) very concerned, providing an opportunity for letting agents to offer extra help and support to landlords.
Meanwhile, three-quarters (75%) of landlords said regulation has made them less likely to grow their portfolios, and half (49%) are planning to sell or reduce their stake within two months. Almost one in two (44%) landlords cited regulatory pressure as the single biggest barrier to growth currently facing them, dwarfing concerns around taxation (14%) and economic uncertainty (12%).
The data shows that just 18% of tenants feel fully confident in their new rights as renters and more than a third (38%) say better information about the RRA would improve their renting experience.
View the report here.
