Most letting agents are not ready for the transition to periodic tenancies, indicating confusion about the constantly evolving Renters (Reform) Bill, according to a survey conducted by Goodlord.
The eagerly anticipated legislation is expected to bring about a change to periodic tenancies, which are rolling contracts with no fixed termination date. This will necessitate a variety of operational alterations for agents, ranging from revising agreements to introducing new protocols for rent reviews.
Yet, a Goodlord survey involving 129 agents reveals that many are unprepared for the upcoming changes, with a mere 2% of agencies proactively modifying their tenancy arrangements in anticipation of the new regulations.
Oli Sherlock, the head of insurance at Goodlord, commented, “The fact that most letting agents feel unprepared for the rental sector reform comes as no surprise.
“Even though the bill has been a long time in the making, it still seems hastily put together and falls short in certain respects of its intended goals.
“With no specific start date and further details on subsequent provisions yet to be determined, agents find themselves in a state of uncertainty.
“One thing is certain, however: the upcoming changes are complex and landlords will rely more than ever on the expertise of letting agents.”
Some agents are at least beginning to consider what they’ll need to do differently, with 30% acknowledging they have given some thought to the necessary adjustments but haven’t taken any steps yet.
Nonetheless, a significant 57% of agents have neither made plans nor taken any actions in preparation for the new system.
