Editor's note: This brief was summarised by The Property AI Team from a report by PropertyWire. Read the original article for full details.
Majority of Landlords Unaware of Mandatory Property Register
More than three-quarters of landlords in England are unaware of the new mandatory property register being introduced later this year, according to research by property management platform August. Awareness of the new landlord ombudsman was similarly low among respondents.
The findings point to a communication gap between government policy implementation and landlord awareness, with potential implications for compliance rates as the registration deadline approaches.
Registration Requirements and Costs
From December, the Government will roll out the database, with each region in England given a deadline for landlords to register. The registration fee will be £65 per property — a cost that accumulates for landlords with larger portfolios.
Richard Samuel, Chief Executive at August, said landlords had done the hard work of understanding the parts of the Act that change how they let and how they evict. What has not landed, he added, is that the database and the ombudsman are not optional extras for problem landlords, and that every landlord in England will have to register and sign up. He described this as a communication failure the sector needs to fix before the registration deadline.
Familiarity with Other Provisions
The survey revealed varying levels of awareness across different aspects of the Renters' Rights Act. Landlords were most familiar with tenants' right to request a pet, with 59% aware of this provision, while 55% knew that rent can only be increased once a year.
Around half of respondents understood that landlords cannot refuse tenants with children or on benefits, that all new tenancies are periodic, and that Section 21 no-fault evictions have been abolished. Fewer landlords — 42% — were aware that no more than one month's rent can be taken in advance.
Vicki Hextall, Area Manager at East Midlands Property Owners (EMPO), commented that most landlords have made a real effort to understand the Renters' Rights Act. She noted that the fact so many have tightened their referencing shows they are trying to reduce risk rather than walk away, but that the low awareness of the landlord database and ombudsman is a warning.
Market Implications
The regulatory changes come as the UK property market faces broader challenges, with landlords navigating both new compliance requirements and shifting market conditions. Some industry observers note that the additional costs and administrative burden may prompt further portfolio reductions in the buy-to-let sector, which has already seen significant changes in recent years.
The survey results indicate that while landlords have engaged with operational changes to letting practices, the administrative requirements of the new register have not been effectively communicated to the sector.
Source: PropertyWire