Tenants are reportedly experiencing the consequences of the Renters’ Rights Act, with landlords exiting the market and rents increasing, according to new research. SpareRoom claims that since the Act became law, room rents have reached record highs, while the supply of available properties has decreased.
Data from SpareRoom indicates that 78% of landlords in England have no confidence in the rental market following the introduction of the Renters’ Rights Act. The data also suggests that 27% of landlords are leaving the rental market, a figure that rises to 44% among those owning a single property.
More than a third (36%) of landlords are reportedly reducing the size of their portfolios, with this figure increasing to 53% for larger landlords. Fewer than 4% of landlords are expanding their portfolios. Matt Hutchinson, director of SpareRoom, stated that tenants are bearing the cost as landlords depart the market.
Mr Hutchinson noted that while the Act has brought positive changes like the end of no-fault evictions and bidding wars, it has also impacted supply and pushed up asking rents. He added that some landlords, while not selling immediately, do not plan to re-let properties once current tenants leave. The demand for rent guarantors has also surged by 50% since the Act's implementation.