Goodlord's snap poll finds only a small percentage of letting agencies are prepared for the shift to periodic tenancies once the Renters (Reform) Bill becomes law.
A snap poll from Goodlord has revealed that only a tiny percentage of letting agents have taken concrete steps to prepare for the shift to periodic tenancies, highlighting the confusion that surrounds the ever-changing Renters (Reform) Bill and the lack of clarity around the actions agents need to make.
With the long-awaited legislation set to move the market to a system of periodic tenancies (rolling tenancies with no fixed end date), a range of operational changes will be required from agents. This will include everything from contract updates to the introduction of new procedures around rent reviews.
However, a survey of 129 agents by Goodlord has found that few feel ready for what’s to come, with only 2% of agencies having already started making changes to their tenancy structures to prepare for the new rules.
More have started to shape up their plans, with 30% saying they’ve started to think through what changes will need to be made, but have yet to take action.
However, over half of agents - 57% - have taken no action nor made any plans to get ready for the change.
With the new legislation potentially weeks away, this lack of action highlights a critical information gap and underscores industry confusion about the details of how the legislative updates will apply in specific situations.
Oli Sherlock, Managing Director of Insurance at Goodlord, comments:
"It is not surprising that the majority of letting agents don't feel equipped for rental reform. Despite the bill taking so long to reach this stage it still somehow feels rushed and, in certain areas, fails to meet the original purpose it set out to achieve. With little certainty on the timings of both the commencement date and subsequent timings for provisions thereafter, letting agents will continue to be in somewhat of a limbo. What is clear is that the impending changes are not simple and landlords will require the professionalism of letting now more than ever before."
