The newly passed Renters Rights Act is expected to raise rents, with 71% of landlords planning to do so in a bid to offset new costs.
In a survey of 872 landlords, Pegasus Insight found 81% will now be more selective about tenants as a result.
The Renters Rights Act, which received Royal Assent on 28th October, abolishes Section 21 ‘no-fault’ evictions, introduces open-ended tenancies, limits rent increases to once per year and caps advance rent payments at one month.
As such, 73% of landlords surveyed by Pegasus Insight expect the Act to have a negative impact on their lettings activity with 81% foreseeing a negative impact on the wider PRS.
“The Renters’ Rights Act marks one of the most significant shifts in the private rented sector in decades, and many landlords are preparing cautiously,” said Mark Long, founder and managing director at Pegasus Insight (pictured above) who highlighted the challenges of legislating in this area.
“The mismatch between perception and reality underlines how complex PRS reform can be: policies designed to protect tenants could, unintentionally, make it harder for them to find and afford a home.”
