Over half (54%) of landlords would consider leaving the market due to the proposed Renters’ Reform Bill, which is finally getting its second reading.
Unsurprisingly one in five said that abolishing Section 21 evictions is one of the most unattractive elements of the reforms, given that it’s currently the only way of evicting tenants without going through a time-consuming court process.
Alan Thomas, UK chief executive at Simply Business, said: “A combination of economic uncertainty, changing regulations, and rising costs means there’s no shortage of challenges facing the nation’s landlords in 2023.
“The cost-of-living crisis has affected all corners of society, and the buy-to-let sector is no different.
“Insuring more than 300,000 landlords allows us to gain first-hand insight into the integral role they play in the housing market, plus the challenges they’re facing.
“It’s important that landlords are given the time and information they need to prepare for significant upheaval in the coming years, so they can continue to provide much-needed housing for almost five million households nationwide.”
Tightening of rental agreements to mitigate damage caused by pets
Whilst the proposed legislation would give landlords more licence to evict tenants committing antisocial behaviour, the introduction of a requirement for landlords to allow tenants to keep pets unless they have “good reason” proves to be particularly unpopular.
Over half (54%) of landlords believe that the new legislation will increase the potential for damage to rental properties. In response, many (53%) are prepared for more inspections and tightened tenancy agreements.
Continued doubts around eviction powers
Under the proposed bill, landlords would gain stronger rights to repossess properties where tenants exhibit antisocial behaviour or repeatedly build up rent arrears. Despite this, 63% anticipate challenges in the process of regaining possession of properties.
Overall, a majority (66%) of landlords saw these changes becoming more costly and time-consuming to implement.
Rental property still considered a good investment
Despite the current climate, many landlords still consider rental property to be a worthwhile investment, with half (50%) saying that they would recommend investing in buy-to-let property.