The upcoming State of the Lettings Industry report, set to be released on September 12th, 2023, provides insights into the opinions of over 2,000 letting agents, landlords, and tenants in the UK. The report will cover various topics, including how agents feel about upcoming legislative changes, landlord considerations regarding reducing their portfolios, the industry’s perception of Energy Performance Certificates (EPCs), the approach of letting agents towards the future, and how tenants are coping with the ongoing socio-economic crisis.
One area of focus in the report is the sentiment towards the Renters (Reform) Bill, a significant piece of legislation that was introduced in May. The bill continues to generate divided opinions, with the majority of landlords expressing pessimism. Among the surveyed participants, 25% said they felt “very” pessimistic about the bill, and 29% were “somewhat” pessimistic. Only 14% expressed any level of optimism. Letting agents had mixed feelings, with 43% feeling “very” or “somewhat” pessimistic, while only 29% felt optimistic about the changes.
In last year’s report, the abolition of Section 21, which banned “no-fault” evictions, was a highly controversial topic. The majority of agents and landlords believed that this change would have a negative impact. In 2022, over 70% of landlords felt that the Renters (Reform) Bill would be detrimental, but this number dropped to 62% in the following year. At the same time, the percentage of landlords feeling neutral about the change increased from 12% to 29%.
On the other hand, letting agents have become less optimistic over the course of the year. In 2022, 27% of agents believed that the abolition of Section 21 would have a positive impact, but this number decreased to just 11% in 2023.
Regarding the introduction of a property ombudsman, landlords hold the most negative views, with 43% believing that it will negatively impact the sector. Conversely, 22% of landlords felt it would have a positive impact. Among letting agents and industry suppliers, 42% and 41%, respectively, were optimistic about the introduction of the ombudsman.
William Reeve, the CEO of Goodlord, commented on these findings, noting that the report provides a comprehensive analysis of industry sentiment from a wide range of stakeholders. He highlighted how opinions regarding the Renters (Reform) Bill can change over time as the regulatory landscape evolves. Reeve expressed excitement about sharing the full findings of the report in the coming weeks.
Tom Goodlord, the managing director at Vouch, added that the report delves into the true feelings of individuals across the sector, offering valuable insights to a market facing numerous challenges and undergoing rapid changes.