Tenants see the pitfalls in rental reform

Twice a year the NRLA contribute to a tenant-focused research programme led by our research partners, Pegasus Insight. The NRLA is just one of several organisations who contribute to the cost of the research. By being part of a wider network of funders there are two benefits (i) the fieldwork is more extensive and (ii) the reporting has the additional benefit of being completely independent.

Tenant Trends is based on over 3,000 15-minute online interviews with tenants currently renting in the Private Rental Sector (PRS) across England & Wales.

This research is essential to the NRLA as it gives us a realistic snapshot of the tenant experience, and a counterbalance to the narrative pushed elsewhere which is either anecdotal or plays fast and loose with the evidence.

The largest group of renters in the research were with private landlords (45%) with almost a third (32%) letting through an agency.

Renters who had been in the PRS for eleven years or more are much more likely to have a direct relationship with their landlord, rather than rent through a letting agency or to rent through the corporate/build-to-rent (BTR) sector. This latter sector accounted for 6% of all tenant accommodation.

Continuing the trend previously reported by the NRLA, tenant satisfaction – as measured by their likelihood of recommending their landlord to another prospective tenant - is highest with independent landlords:

42% of tenants with a private landlord said the chances of recommending their landlord to another tenant was a “9” or “10” out of 10.

This compares to 31% in the BTR sector and 29% of tenants renting through letting agents

In contrast to the wider media narratives, most tenants across the PRS are satisfied with their landlord. Over two-thirds of tenants reported a “positive experience.”

For those tenants with independent landlords, the results were even higher:

• 77% were “very” or “fairly satisfied” - with just 8% expressing dissatisfaction

The key reasons for the positive ratings included:

1. Responsiveness to repair issues
2. Communication and approachability of the landlord
3. An understanding and fair approach to any issues the tenant may have

The result of the above positivity is that almost two thirds of tenants (65%) with independent landlords, intend to remain in situ once their current agreement ends.

(For most of those tenants planning to leave, that decision is more likely to be a personal decision rather than a reflection of the property condition or a poor tenant-landlord relationship.)

Of course, tenants broadly welcome the RRB. But this is not overwhelmingly so:

• Just 13% of tenants think the Bill will have a “significantly positive” impact on the sector
• Half of all tenants surveyed stated the bill would have either “no impact” (19%) or were “unsure” (31%) whether the Bill would be either positive or a negative on the sector.

There has however been a dramatic increase in the proportion of landlords wanting to sell property:

• In this survey wave, 56% of tenants who are leaving their property because the landlord wants to end the arrangement - report the landlord is "selling up".
  • This is up from just 37% recorded this time last year.

Tenants also see the Renters’ Rights Bill as having one further, potentially problematic, outcome:

• More than three times as many tenants (27%) expect rents to rise following the bill becoming law as expect rent to fall (8%).

Tenant Trends is one of the largest, non-government sponsored, surveys of tenants in the private sector. One key conclusion of this survey is that satisfaction of the homes provided by an independent landlord remains strong.

Many tenants recognise the potential for both reductions in the supply of housing and resultant rent increases once the Renters' Rights Bill becomes law. Indeed, many more tenants this year are having to move because the landlord wishes to sell than was the case at the same stage of 2024. So, the Bill is already having an effect on tenants - but not necessarily one that was intended.

For more details about Tenant Trends, to obtain a copy of the full report, or to become a subscriber please contact Bethan Cooke at Pegasus Insight ([email protected])