Six in 10 tenants say the Renters’ Rights Act improves their housing protections and conditions, according to the latest Barclays Property Insights report.
The report finds that since the Bill passed in October, awareness and positivity around the Renters’ Rights Act has dramatically increased amongst tenants.
However, many Brits are concerned that in the long-term supply could decrease, pushing up rents.
Existing homeowners are also reporting wariness about investing in additional property due to growing cost and complexity, while older homeowners are prioritising keeping their current home as a legacy.
Six in 10 (60%) say they are aware of the Act and what it aims to achieve (up from 19% in October) and 62% of renters believe it will improve their housing conditions and protections (up from 33%). A further 61% also feel it will make it easier for tenants to challenge unfair treatment from landlords, compared to 28% in October.
This is already influencing behaviour, with 19% of renters saying they are more likely to remain in their current property as a result of the changes.
However, there is growing wariness over the longer-term impacts of the legislation. In October, a quarter of renters (24%) were concerned the limitations on evictions and bidding wars could cause rents to increase, which has risen to 45%.
Meanwhile the same proportion worry the reforms could lead to landlords leaving the market and reducing supply.
One in 10 (11%) homeowners are considering buying an additional property within the next two years.
However, many are cautious – a fifth (22%) say that they would like to own another property, but it feels unaffordable.
High maintenance and running costs are the top cited barriers (28%), a quarter (24%) highlight the time required to manage a property, and 21% point to stamp duty costs.
For those who have considered or already purchased a second home, the average deposit required is £50,340, alongside stamp duty (£29,849) and third-party costs (£5,698), bringing the total upfront cost to £85,887 on average.
Barclays head of mortgages, savings and insurance Jatin Patel said: “As deposit challenges persist, the measures of the Renters’ Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder. However, the longer-term impacts on rental housing remain to be seen, as homeowners weigh up investment in bricks and mortar against other asset classes.”
