Renters’ Rights: preparing landlords for change

Originally published by The Intermediary

In the past couple of months, there have a number of headlines focused on the supposed further (and larger) exodus of landlords from the private rented sector (PRS), suggesting significant  numbers are considering selling up in the face of new legislation, squeezed margins and rising costs.  

However, if you scratch beneath the surface, what people say and what they actually do, often don’t align. Recent research via Benham and Reeves, revealed that rather than a collapse in supply, the rental market has actually seen stock levels increase since the Renters’ Rights Bill  was first announced. It says there are now 23.5% more properties available to rent in England than back in September last year.  

That’s a long way from the narrative of a mass landlord walk-out, and it’s a reminder that while the market is changing, it is not in retreat. 

It is also worth bearing in mind that professional landlords tend to take a longer-term view. They understand that legislative change is part and parcel of being in this sector and adapting is often more fruitful than exiting.  

So, while the new Renters’ Rights Bill – which by the time you are reading this will have become law – will undoubtedly change the shape of landlord and tenant relationships, it does not spell the end of the market. Quite the opposite: it presents an opportunity for landlords who are prepared, informed, and willing to work collaboratively with their tenants and letting agents. 

The challenge, however, is awareness. A recent study by Housing Hand’s ‘Understanding Renters Report’ suggested close to 70% of tenants have never even heard of the Renters’ Rights Bill, and three-quarters are unclear about the impact it will have on them.  

Tenants lacking this knowledge is one thing, but how many landlords are also unclear on the detail of the reforms, particularly those who may not be members of associations or engaged with professional advice channels? Advisers could have a critical role to play in bridging this gap. 

This is why we have developed our new Guide for both advisers and landlord clients, entitled, ‘Getting Landlords Renters’ Rights Ready: A Guide for Advisers’.  

The aim of the guide is simple: to break down the legislation in a clear and practical way, outlining what the Bill means in reality for landlords and what steps they need to take to stay compliant. From the abolition of assured shorthold tenancies, to new rent-setting rules, to the extension of the Decent Homes Standard, landlords will need to familiarise themselves with significant changes. They will also need to be ready for new obligations such as registration on the PRS Landlord Database and the introduction of a mandatory Ombudsman service. 

For some landlords, this will feel like a steep learning curve. Many have relied heavily on letting agents to handle compliance and management, and it could be that the days of ‘winging it’ in this space are over.  

The Guide, available from the Fleet Mortgages’ website, stresses the importance of landlords having at least a working knowledge of the rules, even if they do continue to use agents, so they can hold them accountable and ensure their properties are being managed properly. In short, the landlord-tenant relationship is becoming more structured, more professional, and more focused on transparency. 

Advisers who are able to help landlords navigate this transition will not only strengthen their client relationships, but also add tangible value. Informed advisers can help clients put the right processes in place, encourage proactive maintenance and communication, and ensure landlords are taking a business-minded approach to their portfolios.  

This is where the positives can shine through: landlords who embrace these changes will be better positioned to offer quality housing, attract and retain tenants, and build sustainable, long-term businesses. 

Professional landlords recognise that rental demand remains strong and that well-run portfolios continue to generate returns. They are also aware that uncertainty in the wider housing market – not least for would-be homeowners navigating mortgage affordability challenges – only strengthens the case for rental as a tenure. 

So, rather than seeing the Renters’ Rights Bill as the beginning of the end, advisers should view it as a catalyst for a more professionalised sector and a further opportunity to engage with existing, and new, clients.  

Our Guide is designed to help advisers take a leading role in that conversation. And once landlords are armed with the right information, they can move forward with confidence. 

In the end, change always brings both challenges and opportunities. Saying you’ll sell up is one thing; actually doing it is another. The evidence suggests landlords are adapting rather than retreating.  

Advisers now have a unique opportunity to make sure that adaptation is successful, and in doing so, reinforce their place at the very heart of landlord’s financing wants and needs.