Top ten takeaways from the 2024 private rented sector survey

Continued turbulence in the private rented sector:

The sector remains under pressure from regulatory, economic, and market forces, with the Renters’ Rights Bill set to bring significant changes in 2025 and regulatory change cited as the biggest challenge for both landlords and agents

Over half (53.7%) of all respondents believe the sector is not fit for purpose. This compares with two years ago when three quarters of landlords and agents felt that the sector was fit for purpose, reflecting a growing lack of confidence

Tenant challenges center around affordability and security:

Rising rents (88.2%), a shortage of properties (49%), and lack of long-term security (43.6%) dominate tenant concerns

Despite challenges, 64% of tenants feel secure in their homes, and 73.7% report satisfaction with property quality

Affordability remains a significant barrier to homeownership, with 58.1% citing cost as the main obstacle

Landlord and agent sentiment declines amid regulatory pressures:

Over two-thirds of landlords (67.2%) and more than half of agents (52%) believe the sector has deteriorated, largely due to legislative changes and economic challenges

While regulatory compliance remains the top challenge for landlords (34.3%), many are adjusting to anticipated changes, with over half intending to stay in the sector long term

Sector-wide concerns about rising costs and supply shortages:

Rising costs, energy efficiency requirements, and limited rental stock are common challenges for landlords and agents

Over 58% of landlords, and agents now question whether renting offers good value for money—a sharp decline from 2023 levels when 85.8% of landlords and 73.2% of agents felt that renting offered good value for money for their tenants

Energy efficiency gains momentum:

Nearly 80% of tenants consider energy efficiency important and over 58% of landlords have already made eco-friendly upgrades, while nearly 29% plan to upgrade properties to meet EPC Level C standards in the next five years

Tenant demand and regulatory pressures are driving energy efficiency upgrades

Mixed reactions to Renters' Rights Bill provisions:

The abolition of Section 21 remains overwhelmingly the top concern for 60.1% of landlords and 68.5% of agents, with both being least worried about the end to rental bidding wars

However, awareness of the Bill among tenants is low (26.9%), indicating a need for better communication about forthcoming changes

Pets in rentals and other emerging trends:

Landlords are becoming more open to allowing pets, with only 16.2% refusing under any circumstances—a notable shift from 2023 when 49.6% of landlords were against pets in rental properties

Traditional deposits remain the deposit solution of choice, with only 2.4% of tenants opting for a deposit alternative and 15.6% of landlords and agents reporting that they have ever used a deposit replacement option

Positive tenant-landlord relationships persist despite challenges:

The majority of landlords (65.2%) are responsive to tenants’ needs, and nearly all landlords and agents (98%) rate their relationship with tenants as satisfactory or better

Government support perceived as insufficient:

Most landlords (76.2%) and agents (73.5%) feel less supported by the current Government, a decline since 2023 when 61.9% of landlords and 50.2% of agents felt ‘not supported at all’ by the Government

Even tenants, the primary focus of new regulations, report low levels of increased support from the Government (17%)

Future prospects depend on navigating change:

Legislative compliance, supply challenges, and rising costs and will define the sector’s future. Proactive preparation for regulatory changes and fostering collaborative tenant-landlord-agent relationships will be crucial for stability