Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Landlords Report Eviction Challenges Following Rental Reforms
Landlords are already experiencing difficulties regaining possession of their properties from problem tenants just months after the introduction of the Renters’ Rights Act. The reforms, which came into effect in May, abolished no-fault evictions and now require landlords to issue a section 8 notice with a valid reason to reclaim their property.
Research by lettings platform Goodlord, based on responses from almost 250 landlords, found that a quarter have reported challenges in regaining possession from problem tenants. The survey also revealed that two in five landlords have adopted more cautious tenant vetting procedures to avoid repossession issues, while 9% are investing more in tenant retention to reduce turnover.
Goodlord’s findings indicate that half of landlords have noticed an increased compliance burden as a result of the Renters’ Rights Act. Additionally, 29% of respondents reported higher compliance and insurance costs. A quarter of landlords have seen higher letting agent fees, and 10% have experienced longer void periods between tenancies.
The research also included a survey of 2,001 British tenants to assess the impact of the Renters’ Rights Act on their renting experience. Only 5% of tenants reported being served or threatened with “Section 21-style” evictions since the ban, suggesting that most landlords are complying with the new legislation and that such evictions remain rare under the new rules.
These findings highlight the increased importance of thorough tenant selection and referencing for letting agents and inventory clerks, as the process of regaining possession has become more complex under the new regulations.
Source: The Negotiator