The removal of Section 21 notices and the end of fixed-term tenancies are the two issues that concern landlords the most, according to a new report issued by Propertymark.  

The trade body’s latest study found that 72 per cent of landlords were worried about the end of Section 21 notices, and 69 per cent viewed the removal of fixed-term tenancies as an issue.  

Under the Renters Reform Bill, fixed term tenancies, including assured and assured shorthold tenancies, will be abolished, and replaced by periodic tenancies with no fixed end date. The Bill will also abolish section 21 ‘no fault’ evictions.

Around 1 in 5 (18 per cent) of landlords agreed that they understood the Renters Reform Bill, while only 3 per cent of those surveyed had read the guidance surrounding the legislation.  

52 per cent of landlords surveyed disagreed that the guidance that accompanied the Bill was sufficient placing an emphasis on landlords using a professional letting agent to navigate future changes.

Commenting on the report’s findings, Timothy Douglas, Head of Policy and Campaigns at Propertymark, says:  “Propertymark has long argued that a fixed term tenancy allows security of tenure for the tenant and a guarantee of rent payments for the landlord. The Renters Reform Bill will only be workable in practice if it addresses the on the ground challenges, we know affect landlords. 

“Furthermore, it is imperative that landlords are aware of the upcoming legislation and are given the adequate guidance and support to deliver a high level of service for tenants. Propertymark agents have a key role to play in the implementation of the legislation.”

Meanwhile in today’s edition of the right-wing current affairs magazine The Spectator, the ending of Section 21 is cited as a mis-step by Housing Secretary Michael Gove.

Writer and property expert Ross Clark says in the magazine: “This would essentially return tenancy law pretty well back to where it was in the 1980s, when many people with spare properties were loathe to let them out for fear they would be unable to take back possession when they needed to. While the rental market has always had its Rachmans, happy to turn out a family of house and home on a whim, there are very genuine reasons why people might want a property back after, say, 12 months.”

Clark says Gove has instituted reforms which favour tenants and would-be home-owners over landlords – but that this is backfiring.

He continues in his Spectator piece: “Gove has decided to side with frustrated would-be homeowners. But there is another group with whom you might expect the government to have a little more sympathy: private pensioners. 

“If, unlike Gove, you do not face the prospect of a featherbedded retirement courtesy of a gold-plated pension underwritten by the taxpayer, you are forced to make other provisions. The miserable performance of the UK stock market has pushed many people of quite modest means into buy-to-let. 

“These make up a large proportion of the landlords on whom Gove has declared war. He cannot expect a lot of thanks for this at the ballot box.”