Six in 10 tenants say the Renters’ Rights Act will improve the protection and conditions of their housing, according to the latest Barclays Property Insights report.
The report shows that since the bill was passed in October, there has been awareness and positivity around the Tenants’ Rights Act has increased dramatically among renters.
However, many Britons are concerned that supply could decline in the long term, causing rents to rise.
Existing homeowners also report that they are reluctant to invest in additional real estate due to increasing costs and complexity, while older homeowners prioritize keeping their current home as a legacy.
Six in ten (60%) say they are aware of the law and what it aims to achieve (up from 19% in October) and 62% of renters believe it will improve their living conditions and protection (up from 33%). A further 61% believe it will become easier for tenants to challenge unfair treatment by landlords, up from 28% in October.
This is already having an impact on behaviour: 19% of renters say they are more likely to stay in their current home as a result of the changes.
However, there are increasing concerns about the longer-term impact of the legislation. In October, a quarter of renters (24%) were concerned that restrictions on evictions and bidding wars could cause rents to rise, which rose to 45%.
Meanwhile, a similar percentage are concerned that the reforms could lead to landlords leaving the market and reducing supply.
One in ten (11%) homeowners are considering purchasing an additional home in the next two years.
However, many are cautious, with a fifth (22%) saying they would like to own another property but it feels unaffordable.
High maintenance and running costs are the most commonly cited barriers (28%), a quarter (24%) point to the time it takes to manage a property, and 21% point to the cost of stamp duty.
For those who have considered or already purchased a second home, the average deposit required is £50,340, in addition to stamp duty (£29,849) and third party fees (£5,698), bringing the total initial cost to an average of £85,887.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “As deposit challenges persist, the Renters’ Rights Act measures to curb steep rent rises could give tenants more room to save and in turn widen access to the property ladder. However, the longer-term impact on rental properties remains to be seen as homeowners weigh their investments in physical assets against other asset classes.”