A leading expert in the rental market is raising alarms over proposed legislation that could significantly impact the lettings sector. Doug Shephard, director of the Home website, which provides widely-respected market analyses for both the rental and sales markets, cautions that the Labour government’s forthcoming Renters Rights Bill may be the final blow for many landlords.
Shephard’s concerns are rooted in the potential for Metro Mayors, most of whom are Labour, to serve as test cases for new rent control measures. Additionally, the Bill’s provisions—which include tighter eviction restrictions, enhanced tenant rights, and a push to allow more pets in rental properties—could pose serious challenges for property owners.
In his latest monthly report, Shephard writes, “Activists’ calls for rent controls and an end to contractual tenure are casting dark shadows over the future of both the sales and rental markets. Too many landlords are already selling up, fearful that either they won’t be able to set the rent required to cover their costs or they’ll be forced to join expensive licensing schemes or both.”
Shephard warns that these developments could exacerbate the long-standing supply crisis in the rental market. He highlights a dramatic drop in the number of available rental properties: in August 2019, there were 96,000 homes for rent across Britain, but that figure has plunged to just 66,000 in August 2024—a 31% decrease.
As a result, rents have been on the rise, although the overall rate of increase has been tempered by London’s particularly sluggish performance. Home’s data shows that the national growth rate for asking rents is a modest 1.1% annually. However, regional disparities are stark. Wales leads the way with a 14.5% year-on-year rise, followed by the South West at 11.7%. Yorkshire and the North East also report double-digit growth, while Greater London has seen a year-on-year decline of 1.2%, with boroughs like Bexley and Haringey experiencing the sharpest drops, at 16.6% and 9.4%, respectively. The East and West Midlands have also recorded declines of 2.8% and 0.8%.
On the sales front, asking prices have risen by 0.2% over the past month across England and Wales, marking the seventh consecutive month of increases. Prices are now 1.2% higher than in August 2023, with gains in Wales, Scotland, and most English regions, except for the North West and South East, where prices have remained static.
However, the volume of unsold properties continues to climb, reaching a 10-year high for August. Nearly 6,000 properties were added to the market last month, bringing the total number of unsold homes in England and Wales to 494,837.