Landlords selling up is fuelling the homelessness crisis – NRLA

Landlords selling up is fuelling the homelessness crisis – NRLA

9:39 AM, 11th December 2024, About 2 weeks ago 13

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The number of tenants facing homelessness due to landlords selling up has soared by a third since the end of last year, the National Residential Landlords Association (NRLA) reveals.

It says that between October and December 2023, 5,400 households in the private rented sector (PRS) in England were forced to seek council support after their landlord decided to sell.

This figure has since risen to 7,130 households between April and June 2024.

Selling a property has emerged as the primary reason for landlords ending tenancies – that’s nearly three times more than the next reason.

‘Landlords decide to sell up’

The NRLA’s chief executive, Ben Beadle, said: “Right across the country it is tenants who are suffering as landlords decide to sell up.

“No amount of changing the rules about when landlords can sell will address the central problem in the rental market, namely a chronic shortage of homes to meet demand.”

He added: “What tenants need is greater choice.

“That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing.”

Notice period before landlords can sell

While the upcoming Renters’ Rights Bill will extend the notice period before landlords can sell, the NRLA argues that more substantial measures are needed to encourage landlords to remain in the PRS.

Government figures reveal that a third of landlords (31%) intend to sell their rental properties within the next two years, up from 22% previously.

However, only 7% plan to provide new rental homes, down from 11% in 2021.

With an average of 21 people competing for each available rental property, the NRLA is urging the government to reform rental housing taxation to incentivize the supply of high-quality homes.

Reform the way rented housing is taxed

The NRLA is now urging the Government to reform the way rented housing is taxed to encourage the supply of new, decent quality rental homes.

Also, it says that responsible landlords need confidence that when Section 21 ‘no-fault’ repossessions end, legitimate possession cases will be processed quicker by the courts than at present.

The NRLA also wants the Government to publish a clear plan to improve the court system.


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Dennis Forrest

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14:46 PM, 11th December 2024, About 2 weeks ago

Reply to the comment left by Cider Drinker at 11/12/2024 - 11:53
I agree with this on the whole. When a property is sold it will normally be bought be someone just moving house or maybe some one who wants to rent it out so there is no net loss to the overall housing market.
This also applies if a tenant buys it as their previous property will now be available for rent. There will only be an overall net loss in the following examples:
1. The house is bought by someone who was living with parents, and due to paying no or little rent has saved up a decent size deposit.
2. The house was a HMO and bought by a large family and reverted back to a large single unit family house.
There are other smaller reasons like property needing major works after a sale before occupancy or resale.
BUT in any case tenants on benefits are always going to struggle because of the drawbacks for landlords. I would go as far to say that many landlords might prefer to rent their property to someone who was working rather than accept 10% more to a family on benefits.

Cider Drinker

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17:37 PM, 11th December 2024, About 2 weeks ago

Reply to the comment left by Dennis Forrest at 11/12/2024 - 14:46
The thing is, when someone buys their first home when they leave their parents’ property, it means that they don’t add to the long list of wannabe tenants.

I think more properties are being converted to HMO than reverting to family homes form HMO, sadly.

The ratio of owner-occupiers vs tenants is changing in favour of owner-occupiers. This means poorer are being disadvantaged by the Labour government - that they probably voted for. Karma?

Reluctant Landlord

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7:49 AM, 12th December 2024, About A week ago

NOT my problem!

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