There has been a notable drop in the number of rental properties from the market across the country in the last year, with “anti-landlord rhetoric” from the UK government cited as a reason for the fall by letting agents.
A number of agents are concerned that removing Section 21 without adequately resourcing the court system will take away many of the protections that have allowed the private rented sector to grow since the late 1980s and dissuade landlords from reinvesting or deterring new entrants into the market.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Currently, amongst letting agents there is a concern about the use of anti-landlord rhetoric and how this is leading landlords to take their properties off the market or leave the sector altogether. Our Housing Insight Report shows that there are on average eight registrations for each available property, with new instructions also reducing.
“Letting agents strongly refute the suggestion that landlord greed is responsible for so called ‘bidding wars’. The lack of supply of homes to rent often leads tenants, who are desperate for somewhere to live, to offer increased rent.”
Ahead of the Second Reading of the Renters’ Rights Bill on Wednesday, Propertymark is urging MPs not to overlook the key role landlords and letting agents play, and to strengthen the Bill so it retains choice, flexibility and keeps costs down for tenants and landlords alike.
According to the UK government, “Renters have been let down for too long” and the reforms will “give greater security for 11 million renters”.
However, according to the English Housing Survey, “71% of private renters say they found it easy to pay their rent and 95% were not in rental arrears. Within the social rented sector, the figures showed 73% said they found it easy to pay their rent and 85% were not in rental arrears.
Furthermore, most private renters (63%, 424,000 households) who had moved in the last 12 months cited they had decided to end their tenancy because they wished to move.
“The Bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing their homes from the private rented sector, frequently moving them to short term lets. The impact this could have on tenants it is trying to protect can’t be underestimated,” Douglas said.
… and bears **** in the woods!
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Of course Government legislative interference is the reason landlords are leaving the sector. Personally I cannot understand why organisations like NRLA etc. continue to inform that the new Renters’ Act is also good for the landlord. Have I missed something? I can see nothing for landlords. Four months before landlords can even serve papers for rent arrears and possibly another 12 months for the courts to get their act together could result in repossessions for smaller private landlords especially as we know landlords have no hope of ever seeing their arrears. One landlord reported that the amount of arrears per month his tenant was allowed to pay would take 83 years. The tenant is driving a brand new BMW albeit on finance. Surely his debt to the landlord should supersede his luxury car.
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