In a recent survey conducted by PayProp, a leading automated rental payment and client accounting platform, startling revelations have emerged about the plight of tenants in the UK housing market. According to the findings, a staggering 50% of tenants were compelled to vacate their rented accommodations last year due to landlords opting to sell their properties. This revelation takes centre stage in the Rental Confidence Index report, overshadowing other factors such as eviction, cited by a mere 11.3% of respondents.

Neil Cobbold, the managing director of PayProp UK, underscored the profound impact of these property sales on the Private Rented Sector (PRS). Cobbold elucidated, “The majority of homes sold by landlords are snapped up by first-time buyers, leading to a permanent withdrawal of these properties from the rental market.” This trend not only exacerbates the scarcity of rental housing but also fuels heightened competition among tenants, potentially triggering an escalation in rental prices.

Cobbold identified several underlying factors propelling landlords’ decisions to divest their properties, including the aging demographic of landlords, prevailing economic conditions denting profitability, and escalating regulatory obligations. “To reverse this alarming trend of dwindling PRS properties, the Government must devise strategies to retain existing landlords in the PRS and incentivize new investors to enter the sector,” he emphasized.

These revelations surface amidst the backdrop of the Government’s Renters (Reform) Bill, which has recently passed its Third Commons Reading and advanced to the House of Lords. The proposed bill seeks to usher in substantial transformations within the PRS, including the abolition of Section 21 evictions, transitioning most tenancies to periodic tenures, and bolstering tenant rights, encompassing the right to challenge rent hikes and legal entitlements regarding pet ownership.

Furthermore, the survey findings indicate a discernible shift in industry sentiments, with a notable decline in pessimistic outlooks and a concurrent rise in neutrality or optimism regarding the future trajectory of the PRS. Nevertheless, fewer industry professionals envision themselves remaining within the sector five years hence, underscoring the mounting challenges confronting the rental housing landscape.