A minority of tenants believe that abolishing Section 21 ‘no fault’ evictions will be good for the private rented sector, a new report has claimed.
The annual State of the Letting Industry report, which canvassed 550 estate agents and 1,700 tenants, found that 38% of tenants believe that the repeal of Section 21 will have a major and positive impact on the private rental sector, while 30% of agents believe it will have a major and negative impact.
For arrears, the report echoes several other pieces of research, revealing that among the agents it polled, the number reporting an increase in arrears halved since the previous 2020 survey, dropping from 64% to 32%, with an additional 14% of agents saying arrears have fallen during the past year.
But a small but worrying minority of 16% say arrears among their tenants have increased by at least 30%.
Overall agents remain optimistic, although the industry is showing some signs of caution following 18 months of uncertainty; although 67% feel either “very optimistic” or “somewhat optimistic” about the future of the lettings industry, this was down from 80% in September 2020.
Tom Mundy (pictured), COO of Goodlord, says sourcing new revenue streams, embracing technology, and streamlining processes are all gathering pace, as agents make their businesses fit for the future.
He adds: “After a year like no other, these insights offer a picture of a resilient, forward-thinking industry which is moving with the times and responding to major shifts in tenant demand and landlord behaviour with characteristic stoicism and professionalism”.