Law firms have reported a significant rise in the number of landlords looking to end rent-to-rent agreements with councils or companies who sublet to local authorities.  

Ryan Heaven, consultant solicitor at Woodstock Legal Services, reported that one landlord might typically approach him for help every couple of months, but he has seen 10 in the last month alone.

He’d mistakenly assumed that once the Renters’ Rights Bill was announced, rent-to-rent agreements would see a renaissance as landlords sought to offload the administrative and legislative burden onto reputable players within that sector.

“Perhaps the kind of landlord who would already be operating under a rent-to-rent agreement already had one foot out the door and the Bill was the final straw,” Heaven said.

Rent Repayment Orders

He doesn’t believe it is connected to the fact that Rent Repayment Orders will apply to superior landlords - as well as the rent-to-rent firm - once the Bill is passed.

“Most people aren’t aware of their existence,” he tells LandlordZONE. “I think it’s more that landlords who’ve had these agreements for years now just don’t want the hassle anymore.”

Robin Stewart, of Anthony Gold Solicitors, has witnessed a similar trend with local authority rent-to-rent agreements.

He said: “In part I think it’s landlords simply cannot believe they are being told the truth by the council about how long evictions through the courts are going to take.”

Landlords have appreciated the fact there is certainty in these set-ups, which usually last between two and five years, Heaven explained.

Some of them have had agreements running for up to 15 years but realised that while market rates have risen, the rent-to-rent firm is making larger profit margins, while they are not.

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