Landlords still quitting because of Renters Rights Act

A study of the private rental sector suggests that the move away from fixed rate tenancies has been the most damaging part of the Renters Rights Act (RRA) for landlords.

This year’s State of the Lettings Industry Report is Goodlord’s biggest yet and draws on 3,031 respondents: 442 lettings professionals, 589 landlords, and 2,000 tenants. 

Amongst landlord responses: 

• Over half (57%) of landlords say the move away from fixed term tenancies has been negative;
• 1 in 4 (26%) of landlords say they are more likely to reject applicants they would have previously accepted;
• A third (31%) of landlords would rather leave a property vacant while waiting for a lower-risk applicant;
• More than 1 in 4 (27%) of landlords are trying to reduce their holdings or have done so over the past year. 

The RRA made it illegal for landlords to accept more than one month’s rent in advance. 

As a result, many have become more cautious about the tenants they accept, the report reveals:

• 26% of landlords say they are more likely to reject applicants they would have previously accepted;
• 31% would rather leave a property vacant while waiting for a lower-risk applicant;
• 33% are more cautious about applicants with limited or poor credit or rental history, and those with County Court Judgments against their name;
• 57% of landlords also say the move away from fixed term tenancies has been a negative change overall;
• And 42% of landlords expect a negative impact from the upcoming introduction of the landlord database.

“Old issues continue to dog the private rental sector and new challenges are also emerging” comments Goodlord chief executive William Reeve.

“Landlords leaving, rising demand and squeezed supply, and high rents are putting huge pressure on all stakeholders. 

“And the unintended consequences of the RRA are adding to this burden; unwittingly making it harder for certain tenants to get their foot through the door,” 

This article is taken from Landlord Today