Capping rents will cause landlords to leave PRS warns industry body

There can be no stampede to leave the PRS. Any stampede would need to begin with a whole load of court cases for possession; this would act as a funnel to control the number of properties coming to market.

Prices of ‘vanilla’ BTL properties would tumble and landlords would choose to keep them rather than sell ‘at a loss’,

Reply to the comment left by George Pearson at 07/09/2023 - 13:44Unfortunately, if their choice is sell at a one-off loss or continue to let at a mounting ongoing monthly loss most landlords will simply have to bite the bullet and sell or have the properties repossessed and/or go bankrupt.

Reply to the comment left by George Pearson at 07/09/2023 - 13:44
George you are right about the Courts slowing a stampede of landlords evicting tenants in order to get out of the PRS. We don’t need a stampede a sustained trickle will suffice if goes on long enough. Most published evidence indicates the trickle is well under way. What percentage of PRS homes need to disappear before the housing system is in total crisis with thousands of homeless who cannot afford to rent or buy living in cardboard city shanty towns? I have seen the Dharavi slum in Mumbai, which is possibly the world’s largest slum. I was surprised that many who live in the “posher” parts of the slum (there is a social strata even in slums) have what we would consider as reasonable jobs like teachers, police officers, nurses ,lower grade civil servants, call centre workers etc. who just cannot afford to buy or rent any property in Mumbai but have to work there. It could never happen here could it?

Reply to the comment left by northern landlord at 07/09/2023 - 17:19
I’m afraid it really could happen here. Government is overseeing the destruction of what most people would consider to be England.

The problem is always ‘too many people and too few homes’. If the PRS disappeared overnight, there’d be the same number of properties, there’d be the same number of people and there’d be just as many homeless.

Capping rents for existing tenants is coming I’m sure when Labour get in. The question is will they cap rents for new rentals ? Tenant leaves, property goes on market and essentially a landlord can ask for whatever rent he wants which will get higher and higher due to ever reducing supply. Will Labour cap these rents ?

Reply to the comment left by Dylan Morris at 08/09/2023 - 08:26
Dylan, please don't put ideas in their heads, they have more than enough of their own!
I would also like to mention that LHA rates have in fact now been frozen for four years rather than the stated three. This is because the increases operative from April 2000 were based on rents from September 2019. These four years have seen some of the highest rates of inflation and increases in landlords' mortgage costs for decades.

Reply to the comment left by George Pearson at 07/09/2023 - 13:44
I am spending more and more time keeping up with Goverment policies, its come to the point you need to become profesional to avoid very expensive penalties.
The removal of Sec 21 will cause even more court chaos,and at enormous expense to a Landlord
Anti Landlord policies by Governmwnt Looney Left Shelter & Generation Rent (They do not house anyone)
My solictor wouldnt go near rentals with a bargepole
If you do not get out now it will only get much much worse
There is no joy in being a Landlord just pain

Capping rent is not the answer!

Capping BOE Base Rate is the answer!

This is all part of the build-up to introducing a mandatory Register for Landlords (not unruly Tenants I might add) for which will there will be a fee of somewhere between £500 and £1200 per property simply to raise money for the cash-strapped or bankrupt Councils who couldn't manage a Pee up in a brewery. Many Landlords will sell up and for the few remaing this cost will have to be passed on to Tenants. Firstly, if you're going to have a register for Landlords then it should be a 2 way street as arguably there are more errant Tenants than there are Landlords. Secondly, we all know there are a few "bad" Landlords and Tenants who need dealing with. However, The Renter's Reform Bill is NOT the answer.

Reply to the comment left by Peter at 09/09/2023 - 15:06
Sellup worse to come