The abolition of section 21 — set to be introduced when the new Renters Reform Bill becomes law — continues to be the leading cause for concern for letting agents, according to research by Goodlord.
A survey of 690 letting agents across England shows that the majority feel unprepared to implement the legislation, with large parts of the sector also concerned about the move to a system of assured tenancies and the bill’s potential impact on student lets.
When asked which element of the Bill was causing them the most concern, 50% of the agents surveyed said the abolition of section 21 was their primary worry, a clause that allows landlords to evict a tenant without providing a reason, known as ‘no fault’ evictions.
This is causing some concern among landlords and agents for how they will be able to recover a property in instances such as non-payment of rent or anti-social behaviour.
The next biggest concern is the planned reform to section 8 — where landlords can evict a tenant after six months to either move in themselves, rent out to a relative or sell the property — which is designed to protect landlords after section 21 is abolished.
Even with this safeguarding, 20% of those surveyed said this was their biggest worry and were unsure whether provisions were robust enough.
Some 52% said that extra guidance and support would be most helpful for the move to assured tenancies, which will mean properties will be under rolling monthly contracts once the Bill has been implemented.
According to Goodlord’s survey, 51% of letting agents said they didn’t yet understand what the reforms would mean for student lets, with only 17% — including those specialising in student lets — stating that they understood what the impact would be.
Oliver Sherlock, director at insurance at Goodlord, said: “These findings show that a lot of concerns and unanswered questions remain for agents and their landlords when it comes to the sweeping changes this legislation will enact.
“For some areas — such as the bill’s possibly unintended impact on student tenancies — we hope that the government factors this into the final text of the legislation.
“It’s clear the industry must start to get to grips with the details of the bill and make meaningful preparations now to ensure their businesses are well prepared for change.”
