Pennycook: ‘We don’t want an exodus of landlords’

Pennycook: ‘We don’t want an exodus of landlords’

14:44 PM, 23rd October 2024, About 5 days ago 58

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The Housing Minister Matthew Pennycook says he doesn’t want landlords to leave the private rented sector (PRS) – and he’s seen no evidence that it is happening.

Speaking to MPs at the Committee stage of the Renters’ Rights Bill, Mr Pennycook was asked what his biggest takeaway from the day’s hearing was.

He replied: “We don’t want an exodus of landlords from the sector, but I’ve seen absolutely no evidence of that.

“I think this is a threat that has been bandied about for many, many years now.”

‘There has been an outflux of smaller landlords’

He went on to say that the size of the PRS had ‘doubled since the early 2000’s’.

Mr Pennycook said: “I would say there has been an outflux of smaller landlords, particularly over-geared buy to let landlords.

“That is mainly a result of section 24 tax changes that George Osbourne introduced in 2015 explicitly to slow the growth of the private rented sector so there has been an exit from the sector of certain types of landlords.

“But we are certainly not seeing an exodus.”

‘Good landlords have absolutely nothing to fear’

The Minister went to discuss the feedback from landlords he’d received in recent months.

He said: “The most damaging thing for many was the uncertainty about whether reform is coming through.

“In general, good landlords have absolutely nothing to fear from this system, we think it provides a framework in which they can continue to invest and operate.”

Mr Pennycook said the balance has been struck in the Bill between landlords and tenants and said the aim was not make things ‘much more difficult for tenants’.

He said: “That is why the government is not advocating for rent controls.

“I think the Scottish experience is constructive in terms of what can happen in terms of unintended consequences.”


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Darren Sullivan

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13:35 PM, 23rd October 2024, About 5 days ago

He and the tories want rid of section 21. Removing the best self mediation tool in the industry avoiding CCJ's and high legal fees. The losers will be landlords and tenants. Its a car crash in slow motion.

Cider Drinker

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13:43 PM, 23rd October 2024, About 5 days ago

As the old proverb says…
“There are none so blind as those who will not see.”

Chris Mills

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13:55 PM, 23rd October 2024, About 5 days ago

That'll not be why I'm selling my best performer, a 4 bed semi then? Great current tenants are buying their own place and landed me (though I'm really happy for them) with the dilemma of whether to sell now or risk letting a family, urgently needing a large home, the chance to stay forever, pay nowt and wreck the place. The new generation of renters give me no confidence that they can manage, clean or respect a rented home rather than expect the landlord to do everything for little profit and much risk. Also, I'm 62 and will now cash in as properties naturally become empty. 2 down this year, 8 to go. Money will go into buying and flipping to sensible people. I'll leave tenants to the big boys and the council thankyou very much and watch from afar as the homeless list gets bigger and bigger.

Elizabeth Hill

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13:58 PM, 23rd October 2024, About 5 days ago

Reply to the comment left by Mr Blueberry at 23/10/2024 - 12:27
How do you know when government ministers are lying? Simple - their mouths move! Another pitiful attempt to distract from the impending catastrophe that their policies will bring about, and there are none so blind as those who won't see. Interesting to hear Polly Neate has also recently jumped ship as CEO of Shelter before the proverbial hits the fan and tenants find out how much worse their situations are going to be post reform.......glad I'm part of the exodus as I've had enough - shame good tenants are being caught in the crossfire though!

Cause For Concern

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13:59 PM, 23rd October 2024, About 5 days ago

Reply to the comment left by Chris Mills at 23/10/2024 - 13:55
Fully agree..

Mick Roberts

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14:31 PM, 23rd October 2024, About 5 days ago

He's not getting it is he.
The Landlords even those that's remaining are now being super selective in who they take & they/we ain't taking anyone unless they pay loads up front & are super clean credit worthy.

TheMaluka

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15:29 PM, 23rd October 2024, About 5 days ago

No situation is so bad that government intervention cannot make it worse
G. R. Steele
16 June 2011

Mr Blueberry

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16:12 PM, 23rd October 2024, About 5 days ago

Reply to the comment left by PH at 23/10/2024 - 13:31
The PRS doubled between 2000 and 2016. What the Minister failed to mentioned thatince 2016 the PRS sector has decreased by 400,000. The minister is blind to factual evidence that there is no existing substitute for PRS at the moment. Perhaps he believes a faltering BTR, that is stalling on new builds and accommodating middle class professionals and not poorer families will save the crisis. Some hope! As for building 1,500,000 home in 5 yrs - (that amounts to over 850 new homes a day or 35 an hour for 5 years), is quite frankly ludicrous. I would hope that Kemi Badenoch, who I know is up to speed on this matter, will test the government over the dispatch box in the coming months. She can certainly see the disaster panning out in front of the country.

Cider Drinker

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16:14 PM, 23rd October 2024, About 5 days ago

Reply to the comment left by Mr Blueberry at 23/10/2024 - 16:12
Meanwhile, the number of renters has increased by millions. We import more every day.

Simon Williams

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16:37 PM, 23rd October 2024, About 5 days ago

The minister knows full well that the issue is the number of rented homes RELATIVE to demand. Demand has shot up, but the number of homes for rent has been at best static since 2015 and the PRS as a percentage of total housing is actually down from a peak of 21% to 19%.

Before 2015, landlords were enthusiastically buying and developers were therefore building and supply was therefore keeping up with demand. Not any more.

And we are even seeing the first signs of an ABSOLUTE drop in rental properties, not just a drop in percentage terms and in terms of relativity to demand.

And these trends are worsening because the population is continuing to grow whilst the amount of rules, red tape and regulation aimed at clobbering landlords also grows.

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