Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Renters Support Reforms but Worry About Landlord Exodus and Higher Rents

Most renters believe the Renters’ Rights Act will improve protections in the private rented sector, but many are concerned the reforms could reduce housing supply and push up rents over time. These findings come from new research published in Barclays’ latest Property Insights report.

The report highlights a significant increase in awareness of the Renters’ Rights Act since the Bill passed in October. Six in ten renters now say they understand the aims of the Act, compared to 19% previously. According to the research, 62% of renters believe the reforms will improve housing conditions and tenant protections, and a similar proportion think the legislation will make it easier to challenge unfair treatment from landlords.

The changes are already affecting tenant behaviour, with 19% of renters saying they are now more likely to stay in their current property. However, concerns remain about the longer-term impact of the reforms. Around 45% of renters believe restrictions on evictions and rental bidding wars could lead to higher rents, and the same proportion fear landlords may leave the sector, reducing supply.

Barclays’ report also notes growing caution among homeowners considering investment properties. Only 11% of homeowners said they plan to buy an additional property in the next two years, with many citing affordability, running costs, and higher taxes as barriers. Buyers of second homes face average upfront costs of nearly £86,000, including deposits, stamp duty, and associated fees.

Many homeowners are reluctant to become landlords, with 69% saying they would not want to take on the costs and complexity involved. Nearly half believe owning an additional property is too financially risky in the current climate. Attitudes towards property investment are shifting, with more than a third saying additional home ownership adds pressure to the housing market, and a similar proportion preferring to invest in the stock market instead.

Among older homeowners, the research suggests many view housing as a family asset rather than a retirement fund. Three quarters of Baby Boomers do not plan to use money tied up in their home to support retirement, and 31% see their property as something to pass on to family members. Despite this, Barclays mortgage data shows older buyers are still opting for larger homes, with over half of purchases by over-60s in the past year involving detached or semi-detached properties.

These findings are relevant for UK letting agents and inventory clerks, as they highlight shifting attitudes among renters and landlords, and potential changes in the supply and demand dynamics of the private rented sector.