Landbay has released further findings from its latest landlord survey, revealing how landlords are adapting their approach in response to the Tenants’ Bill of Rights, while also preparing for the introduction of new national registration requirements.
The Q3 survey of more than 2,000 landlords found that more than half (53%) believe the legislation has negatively impacted their buy-to-let business since its key measures came into force in May this year, with 31% describing the impact as “somewhat negative” and 22% saying it was “very negative”.
However, the findings also highlighted the practical changes being made by landlords, with 36% increasing rents, 34% changing their tenant reference requirements or affordability requirements, and 16% increasing their use of letting agents and/or other professional support.
Landby said the findings, published in the week of the first anniversary of the Tenants’ Rights Act, showed how landlords were responding to the new legislation taking into account the additional costs and responsibilities associated with it.
When asked about the changes they had made as a result of the Tenants’ Bill of Rights, nearly a third (33%) said they had decided to sell properties or were considering selling them, while 29% had reduced their plans to purchase additional rental properties, suggesting that the legislation is already influencing investment decisions among a number of respondents.
Other changes included 13% setting aside more money to cover costs, although 28% reported not making any major changes to their business, highlighting the different experiences of landlords as they adapt to new requirements.
Article 21
The survey also asked landlords which individual elements of the law have had, or are expected to have, the greatest impact on their business, with Section 21 abolishing “no-fault” evictions cited by 32%.
Changes in reasons for tenure were highlighted by 14%, while 15% cited the introduction of periodic tenancies and the end of fixed-term tenancies, demonstrating a range of practical concerns that landlords have taken into account as the legislation comes into force.
Landby said the results reflect the sector continuing to adapt to new rules, with the impact varying depending on landlords’ individual circumstances, portfolio structures and future investment plans.
The survey also examined landlords’ knowledge and views of the upcoming national landlord registration requirements, with more than 90% saying they were aware of the introduction of the registration service.
However, awareness does not necessarily mean that landlords fully understand their obligations, with 17% saying they were aware of the register but did not fully understand the requirements, while a further 17% knew a register would be provided but did not know the details.
When asked about the potential impact on their business, nearly two-thirds (65%) expected the new registration system to increase costs, while 44% expected to spend more time managing their property.
More than a third (38%) believe the requirements may lead them to increase rents where possible, while 33% said they may make them less likely to buy additional properties, and 26% believe they may make them more likely to sell.
Only 12% expected registration requirements to have little or no impact on their business, suggesting that landlords expect further changes to their costs and the way they manage their rental properties.
to prepare
The survey also highlighted differences in how prepared landlords are for the new requirements, with 59% describing themselves as either “very prepared” or “very prepared” to implement landlord registration.
However, 24% said they were either not well prepared or not prepared at all, while 17% said they did not yet know enough about the requirements to assess their level of preparedness.
Landby said the results demonstrated the importance of clear information and practical support for property owners as more elements of the legislation are introduced, particularly in light of the potential impact on property management costs and future investment decisions.
Commenting on the latest findings, Landbay Sales and Distribution Director, Rob Stanton, said: “One year into the Tenants’ Bill of Rights, we are beginning to understand how landlords have responded to the changes, with more than half reporting a negative impact on their business. Perhaps most telling is the number who have already increased rents, changed tenant requirements, or reconsidered their plans to buy and sell properties.
“These are not just concerns about what might happen in the future. Owners are already making practical decisions based on the requirements they face now, although the impact will inevitably vary depending on individual circumstances and portfolio structures.”
He added: “The findings on landlord registration are also interesting, particularly given the high level of awareness but the picture is more mixed when it comes to understanding and preparation. Many landlords expect the new requirements to increase the costs and time needed to manage their properties, adding to the pressures they are already facing.”
