Ahead of the publication of the sixth annual State of the Lettings Industry report next month, RentTech platforms Goodlord and Vouch have released initial insights from their landmark survey.
The report, which is due to be released on 12 September, is a comprehensive overview of the private rented sector, bringing together the views of more than 2,000 letting agents, landlords and tenants.
The report will explore industry sentiment on key areas, including: how agents are feeling about upcoming legislative changes, landlord considerations around reducing their portfolios, how the industry feels about EPCs, letting agents’ approach the future, and how tenants are coping with cost of living challenges.
Industry reveals feelings about Renters (Reform) Bill
The report also dives into sector sentiment on the Renters (Reform) Bill, which was introduced to Parliament in May. Insights on how this legislation is affecting landlords, agents and tenants is being shared today, ahead of the Goodlord and Vouch report being released in full.
This significant piece of legislation continues to divide opinion. Landlords are overall feeling pessimistic about the introduction of the new rules – with 25% feeling “very” pessimistic and 29% feeling “somewhat pessimistic” (54% in total). Only 14% are feeling at all optimistic.
Letting agents are more mixed. Some 43% feel either somewhat or very pessimistic about the Bill. However, 29% are feeling optimistic about the changes.
Landlords softening in Section 21 opposition
In last year’s report, the abolition of Section 21 (banning “no fault” evictions) proved a highly contentious area, with the majority of agents and landlords believing the scrapping of Section 21 would have a negative impact.
However, whilst sentiments are still broadly pessimistic, the position of some stakeholders appears to have softened this year, particularly amongst landlords.
In 2022, 71% of landlords believed it would have a negative impact. In 2023, this has dropped to 62%. At the same time, the number of landlords feeling neutral about the change has risen from 12% to 29%.
In contrast, letting agents appear to have lost optimism over the course of the year. In 2022, 27% of agents believed the abolition of Section 21 would have a positive impact. In 2023, this number had dropped to just 11%.
Wider changes continue to divide opinion
Landlords are also feeling more ambivalent about pets in lets compared to 2022. This year, the number of landlords feeling ‘neither positive nor negative’ about having pets in their properties has risen from 18% to 35%.
Opinion is also divided around the introduction of a property ombudsman. Landlords hold the most negative views on the introduction of the ombudsman, with 43% believing it will have a negative impact on the sector, and only 22% believing it would have a positive impact. Conversely, 42% of letting agents and 41% of industry suppliers believe that it will have a positive impact.
Goodlord CEO, William Reeve, commented: “Our upcoming report analyses the opinions of more than 2,000 industry stakeholders, covering more than 120 questions. Through this we’ve managed to build a 360-degree view of industry sentiment. The insights on the Renters (Reform) Bill show how much change a year can bring and how opinions are continuing to shift as the regulatory picture evolves. We’re excited to share our findings in full in the coming weeks.”
Tom Goodlord, managing director at Vouch, added: “After another rollercoaster ride of a year to date for the industry, this report is a deep dive into how people across the sector are truly feeling. We hope this brings valuable insights to a market which is moving at pace and facing a wide variety of challenges.”
