Landlord exodus grows due to Renters’ Rights Bill and EPC C targets

Every measure in the Renters Rights Bill increases either costs or risk for landlords. This will inevitably lead to higher rents. Rents are already ridiculously high and more increases will, of course, increase the risk of default.

So, the RRB will see the PRS shrink.

However, those leaving today are leaving primarily because of measures brought in by the last government. Measures such as the outrageous Section 24, EICR, council tax on empty properties, minimum EPC Ratings and hideously disproportionate ate penalties for minor digressions from overly complex laws. Add in higher interest rates and uncontrolled net migration and it has been the perfect storm for the PRS, impacting landlords and tenants to devastating effect.

The PRS isn’t for the faint-hearted. I’m quite robust but I am leaving the sector as soon as my tenants leave their homes. I loved being a landlord for almost 25 years but it is time to leave. If I’m honest, I should have left already.

Reply to the comment left by Cider Drinker at 10/12/2024 - 12:58
Also don’t forget the dysfunctional court system with its huge delays which is not fit for purpose. And even when you eventually receive a possession order there’s months of delays in getting a bailiff to your property. All of which is compounded by the minister for Housing and Planning, Mathew Pennycook who denies that any problem exists.

I dont agree that all this new regulation will of itself cause rents to rise however the numbers of properties being withdrawn from the rental sector will keep demand very strong.

My own view is notwithstanding all of the additional hassle that is being imposed on Landlords by politicians who have only a superficial understanding of the sector it is inevitable that inflation will return with a vengeance and property remains a sound store of value.

Reply to the comment left by Dylan Morris at 10/12/2024 - 14:08
It is remarkable how uninformed is the Minister.

Red tape, EPCs, section 24, the loss of section 21, backlogged courts, ever increasing penalties for landlords, inability to recover your property - the list goes on and on 🤷‍♂️

With private landlords getting battered, and the social ones getting away with it, who would want to continue being a landlord in a country where you are vilified and made out to be making money to the detriment of good people? I’m just dropping around £7k refurbing a property I only refurbed about 4 years ago as the tenant left it in a mess and left it for long periods unheated and unventilated causing damp in a house which had never previously had that problem.

The government want homes for people, but clearly don’t want private landlords either, yet again they, and the so called charities like Shelter score an own goal by putting more people on the streets and rent up even more.

I despair at their stupidity.

I would not show up on any government "exodus" statistic, because I am not selling up immediately.
But I will never take any more tenants, as each moves out, I will sell that property.
So the result is the same in the long term. And I expect many landlords are like me.
Shrinking of the PRS, more reliance on council housing, less tax income for the exchequer.
Successive governments have killed the goose that provided housing at zero cost to the tax payer, in fact at a considerable gain to the tax payer.
Smart.

LL's WILL be leaving. Just on their terms. There might be a short period of immediate sales, but overall the slow burn will come to pass.

More legislation in the RRB will have an effect, rising interest rates will also have an effect and any more tax threats will also result in people selling up. Dont forget some will sell up as they have noone to pass property on to and some will naturally sell as that is always what the plan was (retirement pot). Some may be forced to pay for care needs etc.

The issue is not who leaves and when really, its where is the LL's to replace them? In the current market there is little appetite for small investors to bother so if anything its the big boys backed by the city who want to build to rent glass coffins in the sky that are interested - and even then they can't make the numbers work at the mo.

One thing IS certain, new accommodation will never meet the levels actually required for the majority to afford. Very little social housing and questionable genuinely 'affordable' properties. It will be a case of live in a glass coffin at an inflated prices and be grateful or suffer.

So no matter how many of the fantasy figure of 1.5M is built, there will still be a huge amount in temp accommodation and a list as the great wall of China for those wanting social rentals.

I suggest that instead of forcing landlords into restructure of buildings to attain energy performance measures.
It would be better and easier to make a market rent reduction to compensate for the extra costs by the tenant to maintain heating levels.
In my case I own two rentals which I am planning to sell if the EPC requirement comes in.
To get from the D to a C would cost far too much to be feasible.

I am being completely silly, should the Social and Council house's not be brought up to current private rental standard, prior to enforcing EPC - rating C on private LL?