New research by mortgage market specialist Pegasus Insight reveals limited awareness among tenants of the Renters’ Rights Bill (RRB) and growing concern that it may drive up rents or reduce the number of available homes.
According to the latest Tenant Trends report, 32% of tenants said they were ‘fully aware’ or ‘mostly aware’ of the Bill’s contents, while a further 20% said they were ‘somewhat aware’. However, 43% of respondents said they were either ‘slightly aware’ or ‘not aware at all’, with an additional 5% answering ‘don’t know’.
When asked about the RRB’s likely impact, 13% of tenants said it would have a significant positive impact and 31% said it would be slightly positive. But 19% believed it would have no effect, 6% anticipated a negative impact, and 31% were unsure.
Tenants cited improved living standards, greater security of tenure following the planned abolition of no-fault evictions, and limits on rent increases as the most welcome potential benefits. However, concerns were raised over higher rents and a shrinking supply of rental properties. In total, 27% of tenants said they expect their rent to increase as a result of the Bill.
Mark Long, founder and director of Pegasus Insight, said: “Our latest Tenant Trends Research Report suggests more needs to be done to educate renters about the new legislation set to be implemented by this Autumn, as a significant proportion of tenants know little to nothing about the imminent changes to their rights.
“In terms of the impact the Bill is likely to have on the market, the 27% of tenants who believe that rents will increase as a result look likely to have their fears borne out. In fact, responding to our Landlord Survey Q4 2024, 62% of landlords said they will look to recoup potential losses incurred as a result of the new legislation by putting rents up.
“While the government is holding fast to its claim that the RRB will not force landlords out of the Private Rented Sector, the fact that more than half (56%) of those who have given their tenants notice to quit plan to sell the property, up from 37% a year ago, is surely significant. Again, tenant concerns that the Bill will lead to a reduced supply of properties appear well-founded.”
The report also found that two-thirds of tenants plan to stay in their current home when their tenancy ends. Of the one-third considering a move, most gave personal reasons such as relocating (32%), changing property size (26%) or buying a home (24%).
One in 10 said they would be moving because their landlord had ended the tenancy. Among those cases, 56% said the landlord planned to sell the property – up from 37% a year earlier – while 22% said it was due to a rent increase (up from 12%) and 16% because the landlord wanted to move in themselves.
