Landlord groups and property experts have warned that ignorance and uncertainty surround new rental reforms.

As the Renters’ Rights Act comes into force today, new research from Pegasus Insight reveals that 80% of landlords are concerned about the new legislation, 70% believe the Act will have a negative impact on their lettings business, and 77% expect it to negatively impact the market overall.

‍William Reeve, CEO at Goodlord, says despite months of preparation, it’s not clear how these changes will play out in practice, with a potential for both intended and unintended consequences. “Many have been well-documented, but others will emerge that nobody predicted,” he adds. “What’s clear is that this legislation has teeth.”

“The changes to the law are not obvious in themselves and there are a lot of uncertainties that the courts will need to resolve,” predicts David Smith, lawyer at Spector Constant & Williams. “The wider effects on the sector and how landlords and tenants will change their behaviour are almost impossible to predict.”

Success

According to NRLA chief executive Ben Beadle (pictured right), the key measures of success are whether responsible landlords have the confidence to continue providing the homes to rent so many tenants desperately need; whether they root out for good the minority of rogue and criminal landlords who undermine the reputation of the responsible majority; and whether the courts process legitimate possession claims, such as those related to rent arrears and anti-social behaviour, fairly and quickly enough to give landlords the confidence to invest in those homes.

“On all three tests, the jury is very firmly out,” says Beadle. “Other important parts of the Act, including the planned Decent Homes Standard, the private rented sector Ombudsman and the PRS landlord database, have yet to be implemented. It is therefore vital that landlords continue to keep on top of how these remaining reforms will be rolled out to ensure they remain compliant with their legal obligations.”

Unclear

Meanwhile, an alarming two-thirds of renters (69%) have either never heard of the Act or are unclear about what it means for them, according to the TDS Charitable Foundation.

Dr Jennifer Harris, head of policy, research and social impact, says the government must avoid assuming its work is complete. “Whilst many of these reforms will undoubtedly empower and support tenants, their impact will depend on tenants fully understanding their new rights and having the tools to exercise them effectively.”

Housing Hand’s research emphasises the need for an increased push to grow awareness, as just 34% of renters report knowing what the Act is, while 37% have heard of it but don’t know what it involves and 29% don’t know what it is.   

The firm found just 3% had heard about it from their landlord but believes that as landlords are required by law to share the government’s information sheet with tenants by 31st May, this figure should have risen significantly by that time.

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