The government has finally committed to reform how landlords evict tenants, including the abolition of possessions enabled under Section 21 of the 1988 Housing Act, and this is a major concern for many letting agents and buy-to-let landlords, with many now considering fleeing the market.
Various studies show that a number of buy-to-let landlords are considering divesting their portfolios and leaving the PRS due to an increase in regulation and rules.
One of the most significant surveys carried this year was by Assist Inventories, which questioned more than 10,000 letting agents and landlords to gather data for their Sectors Snapshot report.
The study, undertaken in early 2022, found that 73% of agents believe that the abolition of Section 21 will cause an exodus of landlords.
The research also revealed that 75% of landlords are likely to now become more selective when choosing tenants, while 45% of landlords plan to just offer short-term lets only.
Some 90% of landlords and 70% of lettings agents want clear and comprehensive grounds outlined for possession when required, with 60% of lettings agents believing that further reforms of Section 8 is required.
More than half – 58% – of landlords think that more financial support is required for tenants in risk of rent arrears, while 48% of landlords believe that the abolition of Section 21 will balance rights with 33% of agents agreeing.
Raj Dosanjh, founder of Rentround, commented: “The abolishment of Section 21 is clearly a worry area for agents and landlords, with many disagreeing with the move.
“Due to the additional risk the abolishment will bring to landlords, it’s obvious that many will move to shorter tenancies and more stringent tenant background checks.
“This will make it harder for tenants with blemishes on their record, or those looking to get long-term residencies to rent in the future.”
SOURCE: Property Industry Eye | JUNE 22, 2022 | MARC DA SILVA
Estate Agents
Comments