Fresh findings from mortgage market analyst Pegasus Insight highlight an alarming lack of awareness among renters regarding the Renters’ Rights Bill (RRB), coupled with mounting unease that the legislation could trigger rent hikes or constrict the availability of rental homes.

The latest Tenant Trends report paints a telling picture: while 32% of renters claimed they were either ‘fully aware’ or ‘mostly aware’ of the Bill’s provisions, another 20% reported being ‘somewhat aware.’ However, a significant 43% admitted to being either ‘slightly aware’ or ‘not aware at all,’ with an additional 5% falling into the ‘don’t know’ category. This data underscores a pronounced gap in understanding that could have tangible consequences for tenants navigating the shifting rental landscape.

Projections regarding the RRB’s impact varied widely. While 13% of tenants expressed confidence that the Bill would bring about a significantly positive shift, and 31% foresaw at least a slight improvement, a more sceptical 19% anticipated no impact whatsoever. Meanwhile, 6% braced for adverse effects, and a substantial 31% found themselves unable to predict its ramifications.

The legislation’s most celebrated potential benefits, as cited by tenants, include enhanced living conditions, greater stability due to the proposed elimination of no-fault evictions, and constraints on unchecked rent surges. Yet, a cloud of apprehension looms, with many fearing that rents may spiral upward and rental stock could dwindle. Indeed, 27% of respondents expect their rent to climb in the wake of the Bill’s enactment.

Mark Long, founder and director of Pegasus Insight, remarked: “Our latest Tenant Trends Research Report suggests more needs to be done to educate renters about the new legislation set to be implemented by this Autumn, as a significant proportion of tenants know little to nothing about the imminent changes to their rights.

“In terms of the impact the Bill is likely to have on the market, the 27% of tenants who believe that rents will increase as a result look likely to have their fears borne out. In fact, responding to our Landlord Survey Q4 2024, 62% of landlords said they will look to recoup potential losses incurred as a result of the new legislation by putting rents up.

“While the government is holding fast to its claim that the RRB will not force landlords out of the Private Rented Sector, the fact that more than half (56%) of those who have given their tenants notice to quit plan to sell the property, up from 37% a year ago, is surely significant. Again, tenant concerns that the Bill will lead to a reduced supply of properties appear well-founded.”

Further insights from the report indicate that stability remains a priority for many renters, with two-thirds intending to remain in their current homes once their lease expires. Among those contemplating a move, personal motivations dominated: 32% cited relocation, 26% sought a property size adjustment, and 24% were looking to purchase a home.

Yet, not all moves are voluntary. A notable 10% of tenants reported that their departure stemmed from their landlord terminating the lease. Among these, 56% said their landlord aimed to sell the property—a marked increase from 37% a year prior. Meanwhile, 22% pointed to rent increases (a sharp rise from 12%), and 16% noted that their landlord intended to move in themselves.

As the Renters’ Rights Bill edges closer to implementation, the rental sector remains in flux, with tenants and landlords alike grappling with the evolving legislative landscape and its potential repercussions.