Housing Minister Matthew Pennycook claims that there’s no evidence that landlords are selling up, which will come as a surprise to the likes of Zoopla who yesterday said that there are record numbers of chain-free properties on the market as landlords sell up
As the Renters’ Rights Bill advances in Parliament, a growing chorus of MPs warns that its provisions could lead landlords to exit the private rental market in favour of short-term holiday lets, potentially disrupting the sector and impacting tenants nationwide.
During a recent Renters’ Rights Bill Committee meeting, members voiced apprehensions about the bill’s potential to reduce long-term rental housing stock. Liberal Democrat MP Gideon Amos cited evidence from landlord advocacy groups, suggesting that restrictive regulations could compel some property owners to shift their business to holiday lettings, a less regulated and potentially more lucrative market.
“Landlord associations, including the National Residential Landlords Association (NRLA) and Dexters letting agency, have expressed serious concerns,” Amos stated. “They argue that the bill risks a steady shift of rental stock toward short-term holiday lets. The NRLA projects a potential 1-2% decline in available rental homes, and the impact could be particularly harmful for communities already grappling with a shortage of long-term rentals.”
Amos warned that an exodus of landlords could spell economic challenges for affected areas, with local businesses potentially facing closures as housing availability tightens.
Housing Minister: “No Evidence of Exodus”
Despite the concerns, Pennycook defended the bill, asserting that there is “no evidence” of landlords abandoning the rental market in large numbers. “The government values responsible landlords who provide quality housing and supports their right to reclaim property for legitimate reasons,” he stated.
Pennycook emphasized that “good landlords have nothing to fear” from the proposed reforms, which he argued will strengthen tenants’ rights while maintaining a stable rental market. He cited the sector’s resilience and growth since the early 2000s, claiming that there has been no significant downturn since reforms were first introduced.
“Contrary to alarmist claims, we believe our proposals will empower landlords to continue investing confidently in this sector,” Pennycook remarked, dismissing fears of a mass landlord withdrawal.
However, some industry groups, including the Guild of Property Professionals, continue to sound alarms, insisting the bill could prompt a market “exodus.” The NRLA has likewise noted a trend toward landlords selling rather than buying properties in the rental market.
Debate Over Rent Controls Intensifies
The discussion over the bill also highlighted ongoing debates on rent controls. Green Party co-leader Carla Denyer argued that effective rent caps should be incorporated into the Renters’ Rights Bill, pointing to European models such as Germany’s. Denyer asserted that in Germany, “in-tenancy rent caps coexist with a large private rental market where more than half the population rents.”
Denyer’s plea was tempered by an acknowledgment of the challenges rent controls pose. “Any system must be carefully designed and built,” she said, cautioning that poorly executed controls could have unintended negative effects on the market.
Responding to Denyer, Pennycook warned that rent controls might exacerbate rental supply issues, potentially harming tenants. “Our bill strikes a careful balance,” he said, underscoring the government’s commitment to addressing housing affordability through incremental reforms.
The Renters’ Rights Bill, which aims to end so-called ‘no-fault’ evictions under Section 21 and extend new protections for renters, remains under scrutiny as MPs weigh the potential consequences for both landlords and tenants. With competing perspectives and high stakes for the rental market, the outcome of these deliberations could have a lasting impact on housing policy across the UK.