8:41 AM, 3rd January 2025, About 2 days ago 17
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Oh, dear. It’s 2025 and the private rented sector is set for one of its biggest upheavals in years – possibly decades.
Landlords are facing unprecedented challenges, thanks to the Renters’ Rights Bill and EPC deadline nonsense, but there’s more for small landlords, in particular, to consider.
If you are a tenant reading this, then please share on social media and remember to copy in the likes of Generation Rent and Shelter. Even if you don’t agree with what might/will happen this year, you’ll need this to refer back to next January.
I’m predicting higher rents, empty rental homes, landlords bailing out and a definite shift towards large institutional landlords making their presence felt.
That’s all good, right? Big landlords with large estates mean more choice? Wrong. More choice means lower rents. Wrong again.
Smaller landlords leaving the PRS is great news, right? Nope. Fewer smaller landlords mean selling up and the remaining landlords putting rents up to meet higher costs.
Plus, with stronger demand for fewer homes, guess what will happen to rents?
I refer often to politicians not understanding the unintended consequences of their policy initiatives.
This became apparent with the Renters (Reform) Bill and now the scary Renters’ Rights Bill.
Years of disinformation mean that tenants, tenant activist groups, the media and politicians don’t understand what will happen with some of their crazy ideas.
I accept that politicians often introduce regulations with good intentions, but without fully considering the knock-on effects.
A prime example is the Renters’ Rights Bill, which aims to improve tenant protections. Who can argue with that?
However, by removing Section 21 ‘no-fault’ evictions – we really need to start calling this ‘no reason given’ because there is almost always a reason – landlords fear being trapped in lengthy legal battles to evict tenants.
It’s a bad eviction process now and with the inept clowns of Labour in charge, it will get worse.
If we can’t get possession of a rented property, why bother renting it out?
It might sound like great news that tenants can’t be ‘turfed out onto the streets’, as Shelter often declares, especially for those renters not paying rent, naturally, but what about the landlord?
Such a move will make us more risk-averse in our tenant selection (forget Labour’s plan to protect families, tenants with pets and those on benefits – it ain’t happening).
It will also potentially lead to a surge in evictions before the law changes.
The unintended consequence of banning Section 21 will, inevitably, mean MORE evictions will take place this year.
Then we have the cost of compliance with new regulations – which includes the barmy idea that councils can introduce the selective licensing of rented homes if they want to.
That means the good landlords will comply and tenants will pay for the licence, while criminal landlords dodge another bullet.
Coupled with rising interest rates and maintenance costs, landlords’ profit margins are being squeezed.
But that’s OK isn’t it because no one should be exploiting tenants.
Except we run a business, not a social charity and we have bills to meet in running a rental property.
With an EPC rating of C being required for rented homes by 2030 (after Labour have long been voted out) means that the running costs for lots of us are going to rise.
The prospect is already forcing many smaller landlords out of the market, which reduces the supply of rental housing.
As demand outstrips supply, rents will rise, putting a strain on tenants and potentially discouraging new landlords from investing.
The departure of smaller landlords could also lead to a consolidation of the PRS with large institutional investors becoming the dominant players.
But that’s good, right?
No, actually, it’s not. This could result in a lack of competition, leading to higher rents and less flexibility for tenants.
Tenants also need to appreciate that institutional landlords will definitely be using strict criteria for selecting tenants. They won’t be interested in benefit tenants.
So, my big prediction for 2025 is that the private rented sector is facing a perfect storm.
There will be more empty homes as landlords try to sell, higher rents and a less diverse landlord market are all on the horizon.
The government – and the utter clown show of the previous administration – must take responsibility for the unintended consequences of its policies.
It needs to strike a balance between protecting tenants’ rights and ensuring a healthy and competitive rental market.
This could involve simplifying regulations, dropping the EPC mandate, reintroducing tax relief and supporting small landlords instead of vilifying us.
The future of the private rented sector is uncertain, but landlords will try their best to navigate the challenges and continue to provide quality housing to tenants.
Those that can’t face the storm have left, or will leave, but for most tenants they’ll have a landlord to depend on, one who respects them and provides a quality, safe home.
You won’t read about the majority of good, decent landlords or see us on TV news reports, but we are here and despite the efforts of our second-rate politicians, we will try to be here for years to come.
That is to provide you and your family with a home that is comfortable and well-maintained. Don’t believe the negative comments that we are all bad – just like our tenants, most of us are good but the media and tenant activist groups only focus on the awful ones.
Until next time,
The Landlord Crusader
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Crouchender
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Sign Up9:50 AM, 3rd January 2025, About 2 days ago
Labour have made a hash of growing GDP with their budget and will make a hash of PRS with RRB.
They are not listening. Starmer won't fight next election, Rayner will take her chance and then hopefully us LLs have a chance to survive a one term Labour government (the worse that has ever been- Blair actually boosted PRS)
JaSam
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Sign Up10:55 AM, 3rd January 2025, About 2 days ago
Didn’t she say she would ban S21 on day one? Still waiting.
None of the above discourages me from the PRS as the rise in rent will/should cover the new level of cost risk and I too will be more selective with new tenants.
What is killing me from reinvestment is the rise is SDLT and still high leverage rates and fees even with an increased rent yield the ROI just not worth the risk anymore.
So I’m not exiting but neither am I reinvesting.
dismayed landlord
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Sign Up11:06 AM, 3rd January 2025, About 2 days ago
Reply to the comment left by JaSam at 03/01/2025 - 10:55
Yes what ever happened to day one ban on section 21 -
You make a good point to sit and wait.
I will not be. I jumping before the ship sinks.
But I respect your position.
NewYorkie
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Sign Up11:09 AM, 3rd January 2025, About 2 days ago
I agree with everything you've said.
I wasn't worried about past financial crashes and austerity, despite being made redundant in 2008. Life seemed to go on much as before. But for the first time in 52 years as a voter, I am actually worried about the economy, and how this sh**show of a government will affect those who have saved for their and their families' future.
This pushes being a landlord into a poor second place.
We have choices. We don't need to provide housing, and why should we take all the c**p governments and councils throw at us. Something they don't seem to understand.
This puts being a landlord in a poor second place.
Freda Blogs
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Sign Up11:11 AM, 3rd January 2025, About 2 days ago
Thanks Crusader, I agree with much of what you say, but would clarify one point: “ Those that can’t face the storm have left, or will leave”.
It’s not just the LLs who can’t face the storm - there’s many, including me, who simply won’t. I refuse to be pushed around to dance to the Government’s tune to comply with their ill conceived legislation, which is effectively a sticking plaster for years of governmental failures in housing policy.
Government forgets that most LLs have choices about what to invest in and can walk, but sadly many tenants don’t have that choice and they are trapped in the fall out of diminishing supply and the higher rents that this appalling legislation will bring.
dismayed landlord
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Sign Up11:52 AM, 3rd January 2025, About 2 days ago
Reply to the comment left by NewYorkie at 03/01/2025 - 11:09
I had been made redundant 4 times - all on crap terms. Taken early retirement at 50 on medical grounds. I made BTL work. Simply as I did not trust the system I was expected to believe in. And it did for me under all the circumstances I was facing. I was self employed. Bought old places did them up. Rented to benefit claimants and professionals. Any creed, religion and even with pets. lol.
However things have changed. I’d stay as I actually like the tenants overall. There have been a couple of negatives. Overall though I got on well with most tenants and charged them a reasonable rent for a good property. Had a few tenants for nearly 20 years. We were friends as much as the relationship allows. It was working well then all this stuff from Polly army shelter and the other so called fo holders comes along.
I am almost out now. When it got to the stage I felt guilty about it due to the media witch hunt I decided to sell. You go to a party and your asked what do you do for a living. I gave up saying I am landlord. It never helped the conversation.
It was an income to support my family and it’s worked. Now though it’s too much. Shelter and the other landlords knockers have want they wanted.
It’s not what governments have done as much it’s what they can do - as per the pandemic- remove all our so called rights. Ban evictions as a blanket policy. Issue outrageous fines for missing a piece of paper! It’s the fear they have instilled. I am not risking a £400k property for even 2k a month. Out of interest I never charged that much but that is the market value. I am south east England. I want to know I can evict with good cause and do it quickly. Or if I need my funds back. It’s my money not the tenants. If they do not like the arrangement man up and buy their own.
As I said earlier I respect others alternative optimism and opinions but it’s not for me.
Cause For Concern
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Sign Up13:16 PM, 3rd January 2025, About 2 days ago
Reply to the comment left by dismayed landlord at 03/01/2025 - 11:06
As a result of Rayner's "from day one" announcement,I issued S21 notices to 25 of my tenants before the election, while I still could, and am selling up the resulting vacancies.
I blame the Tories (Osborne) for wrecking the PRS even more than I do Labour. Labour are just the last straw, the Tories wrecked the foundations.
dismayed landlord
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Sign Up14:36 PM, 3rd January 2025, About 2 days ago
Reply to the comment left by Cause For Concern at 03/01/2025 - 13:16And there is the real cause. Doesn’t matter if it happens or not. Same as the EPC ‘threat’ or the change in CGT in the future.
You have to react with what is given by whatever lying and non substantive media cr@p.
‘Cos we human! And won’t to keep what we worked hard for and sacrifice lots of time, money, time with family, no holidays, old cars, blood sweat and tears, and belived that working for a living was the right choice.
Next time round I’ll use my disability as a pay check to being a lazy b@st@rd who sits in front the TV and does sweet FA whilst the remaining idiots work their ar$es into ground to pay for me to nothing and still have a house, holidays and a nice new car!
Lomondhomes
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Sign Up15:40 PM, 3rd January 2025, About 2 days ago
Oh Dear! Oh Dear! Oh Dear. This is what happens when governments and councils get involved, especially when they cannt even run their own departments properly, overspend and wanting to put their noses into businesses just to extract money!
geester24
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Sign Up17:30 PM, 3rd January 2025, About 2 days ago
So the PRS is 20% of the total housing market so if the true reason to save the planet then why not make the grade at D. This would allow much Victorian housing to be able to pass with reasonable measures. Make the rest of the housing market (80%) get to an E (with exceptions and mitigations). Mandate cheaper mortgage rates for getting to C for landlords but don't proscribe a D. I reckon it will end up at D myself anyway all things considered.