NRLA warns Labour that rent controls could spark rental crisis

NRLA warns Labour that rent controls could spark rental crisis

0:07 AM, 14th August 2024, About 3 months ago 11

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The National Residential Landlords Association (NRLA) is warning the Labour government that a third of private landlords could sell up if rent controls are imposed on the private rented sector (PRS).

It points to a study it carried out which found that in the second quarter of the year, 82% of landlords in England and Wales reported strong demand for properties from tenants.

Tenant demand is strongest in the South West, followed by the South East, the East of England and the East Midlands.

The North East had the lowest levels of demand, with 68% of landlords describing it as strong.

More renters looking for a place to live

The NRLA’s chief executive, Ben Beadle, said: “Whichever way you look at it there are more renters looking for a place to live than there are homes available.

“Ultimately rent controls would be a disaster for tenants.

“All they would do is choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live.”

He adds: “Housing is expensive because we don’t have enough of every type of property, be it for owner occupation, social rent or private rent.

“The only way to solve this crisis is to boost supply right across the board.”

Landlords twice as likely to sell properties

The PRS remains severely undersupplied, and, despite soaring demand, landlords have been twice as likely to sell properties as buy them over the past year.

Just 8% of landlords bought rental properties, compared to 17% who sold.

Research shows the trend is set to worsen, with a third of landlords planning to sell all or part of their portfolio in the next year versus just 10% intending to buy.

Rented home crisis

The NRLA says that the looming threat of rent controls has exacerbated the rented home crisis.

The International Monetary Fund says that rent controls are associated with lower housing supply, and a Rightmove analysis suggests with the current levels of demand, around 120,000 more rental properties are required for rent growth to return to its normal level of 2% per year.


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Cider Drinker

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8:20 AM, 14th August 2024, About 3 months ago

There’s already a rental crisis. Labour will not make it any less severe. They have an ambition and manifesto pledge to build 1.5 million homes over the course of this Parliament.

Labour will introduce punitive taxes to try to stop landlords selling up. Unfortunately, their predecessors have already forced landlords into financial jeopardy with taxable losses.

Landlords that are making losses or that are threatened with making losses will fight back. Many will have no choice but to sell.

Fix the people problem and the housing problem will resolve itself.

Monty Bodkin

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8:39 AM, 14th August 2024, About 3 months ago

Rent control is not a Labour policy.

Ending section 21 is a Labour policy that will be a disaster for tenants and landlords, why aren't the NRLA opposing that?

Cider Drinker

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9:58 AM, 14th August 2024, About 3 months ago

Reply to the comment left by Monty Bodkin at 14/08/2024 - 08:39
The NRLa needs there to be landlords. Stopping landlords existing the sector is in NRLA’s best interests.

GlanACC

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11:48 AM, 14th August 2024, About 3 months ago

So smiling boy WARNs the government, so much for looking after landlords interest, he should be opposing it - after all the yearly NRLA subscription is now £199. It seems the NRLA are now only a money making machine there to milk landlords.

Steve O'Dell

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12:18 PM, 14th August 2024, About 3 months ago

The NRLA are an absolute joke. Strong opposition to CGT increase, Abolition of Section 21, the 'hardship test', EPC C and selective licensing should be at the forefront of their strategic focus. Unfortunately a boy doing an adults job. If he can't provide suitable opposition then someone needs recruiting to do so. Did someone state that membership fees have increased? Not surprising given the drop off in membership in response to their limp approach to the Renters Reform Bill. I have asked the agent who manages my portfolio to ask our local MP for a sit down to discuss Landlord concerns. He has approached the MP requesting this. If The LNRLA (Limp prefix) won't provide a robust challenge it becomes incumbent upon us at the grass roots to do so in the best way we can. Please reach out to local agents to request the same. Messages will hopefully get fed back. Whether of not the Stasi do anything about them is another matter. I am on the brink of issuing sections 21s all round, selling up and investing overseas. What else would you expect from a far right racist fascist greedy landlord?

northern landlord

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15:44 PM, 14th August 2024, About 3 months ago

I wonder what form rent controls might take? I doubt it will be a total freeze, but if it is, all landlords had better be charging the market rate when any legislation comes in. The Scottish model allows you to increase rent but only within certain boundaries. According to Shelter Scotland you can increase rent by a maximum of 12% based on the gap between the actual rent and the market value rent. If the gap is more than 6%, a formula is used to keep the rent below the market value. Rent. So you will never be able to achieve market rent. The Scottish Government have an online calculator https://rentcalculator.service.gov.scot/ that tells you the maximum allowed increase. Example: you are charging £800/month and the market rate is £1100/month, which you are seeking. Put the figures in and the potential allowable rent is only £896 a short-fall of £204.

John Grefe

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8:33 AM, 15th August 2024, About 3 months ago

Reply to the comment left by northern landlord at 14/08/2024 - 15:44
SNP messed things up ! A good example of socialism doesn't work. Just a pipe dream for Labour Politian's to a job!

Steve O'Dell

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14:17 PM, 17th August 2024, About 3 months ago

Reply to the comment left by northern landlord at 14/08/2024 - 15:44
What other businesses get taxed on revenue and told what their maximum revenue can be? I can't think of any. We supposedly live in a free market economy, this is just another step towards Marxist ideology.

Mr Blueberry

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0:39 AM, 19th September 2024, About 2 months ago

I have not renewed my membership as it is not good value for money.

Landlords with properties that have not risen in value and therefore not subject to capital gains tax would do well to sell and invest elsewhere. I have sold a number of properties and invested at slightly higher income rates but with far more long term stability and liquidity should I wish to sell quickly and reinvest. What I find disturbing is the rude and abnoxious rhetoric toward all landlords from politicians, media and charities

Reluctant Landlord

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8:36 AM, 19th September 2024, About 2 months ago

COULD???

Will!

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