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 10 hours ago 3

Text Size

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.


Share This Article


Comments

Cider Drinker

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:20 AM, 14th August 2024, About 2 hours 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

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:39 AM, 14th August 2024, About 2 hours 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

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:58 AM, 14th August 2024, About 25 minutes 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.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now