A new report suggests that the Renters Rights Bill has a silver lining for letting agents – because more landlords will seek their help to keep up with the red tape.
A software firm called SME Professional has written a report suggesting that the experience of Scotland shows that fundamental changes like those in the Renters Rights Bill can be absorbed by agents in England too.
Scotland’s Private House (Tenancies) (Scotland) Act 2015 included the abolition of Section 21-style evictions, ended fixed term tenancies, strengthened grounds for possession and introduced mandator landlord registration mechanisms.
The report claims that letting agents in Scotland have not only adapted successfully to the reforms since they have been implemented from 2017 but, in many cases, have benefited from them.
This analysis is backed by John Blackwood, the chief executive of the Scottish Association of Landlords, who says: “The growing legislative burden on agents in Scotland has not led to a reduction in managed properties. On the contrary, agencies have seen a slight increase in their overall portfolios.
“This trend indicates that, as regulatory requirements have become more complex, many landlords have opted for professional management services and have thereby strengthened agency business.”
SME Professional’s managing director, Fraser Sutherland, says: “The Scottish experience demonstrates that robust tenant protections need not harm the rental market or agency businesses.
“Our customers in England can be reassured that the upcoming reforms may not reduce business opportunities. While regional variations across the UK will no doubt exist – between different regions or between types of landlords – on the whole, Scotland’s experience suggests these changes could actually boost demand for professional services and foster a more stable, well-regulated rental market.”
SME adds that a recent survey shows over 60% of Scottish landlords reporting annual rent increases in 2024, representing a significant increase from just 8% in previous years, with a higher proportion of properties let at market rents. These trends have directly enhanced revenue for letting agents, the company claims.
Sutherland adds: “Fears that tighter regulation would lead to market contraction have not materialised. The private rented sector in Scotland expanded significantly following tenants’ rights reforms, with tenancy lengths increasing and landlord satisfaction remaining high. Far from triggering an exodus, the new rules have led to greater professionalism and tenant stability.”
The full report can be viewed here.
