Breaking Property News 28/01/25
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Will the Renters’ Rights Bill unravel the Private Rented Sector
Siȃn Hemming Metcalfe, Operations Director at Inventory Base & Property Inspect UK, a person I hugely admire who has a panoramic and insightful view of the rental sector, recently wrote this powerful article outlining that we are on the brink of a precipice – as seismic change is about to hit the lettings world, with catastrophic consequences.
Policymaking is a delicate balancing act, weighing ideals against practicalities to create solutions that work in the real world.
Yet, the recent developments in the Private Rental Sector (PRS) reveal a growing disconnect between government intentions and the realities faced by tenants, landlords, and property professionals.
Reflecting on the debates surrounding the Renters’ Rights Bill, one thought continues to resonate with me:
When a government closes its eyes and ears to the realities of poor policy, it risks not just today’s balance but tomorrow’s stability – leaving tenants and landlords to stumble in the dark.
This isn’t rhetoric; it’s a deeply felt frustration that resonates across every corner of the industry; letting agents, landlords, and property professionals alike. We all see it, we all feel it. Ill-conceived policies don’t just miss the mark; they threaten to unravel the very fabric of the sector, putting landlords, tenants, and the businesses and jobs that sustain it at risk of an increasingly unstable and uncertain future.
The Reality Check: A Sector Under Pressure
The Renters’ Rights Bill, heralded as a step forward for tenant protections, exemplifies good intentions but is so poorly executed that it risks doing more harm than good.
According to Zoopla‘s Rental Market Report (2024), the supply of rental homes in the UK has fallen by 33% over the past two years, while demand has increased by 51%, leading to a 10.5% rise in average rents year-on-year.
While greater tenant protection is not only commendable, it is necessary however the unintended consequences and overlooked risks are creating a perfect storm of reduced housing supply, increased tensions, and widespread market uncertainty.
Fact: Landlords Are Looking to Leave
According to data from the National Residential Landlords Association (NRLA), 35% of landlords are considering exiting the market within the next five years due to mounting regulatory pressures. This mass exodus reduces the availability of rental properties, harming tenants by driving up competition for fewer homes and inflating rental prices.
In England alone, the private rental sector has shrunk by over 200,000 properties in the last 12 months, leaving tenants scrambling for affordable housing options.
Collaboration Turns to Conflict
Policies like tighter restrictions on evictions, though designed to empower tenants, often backfire. A recent report from Propertymark found that 72% of landlords believe the current proposals will make it harder to resolve disputes amicably.
This erosion of trust creates unnecessary friction, leading to increased disputes that further strain an already overburdened system that will not cope without the proper support and investment.
Fact: Confidence Is Being Eroded
Investment in the PRS has decreased. With 57% of landlords reporting diminished confidence in their ability to manage properties profitably, the sector is becoming increasingly unattractive to new investors. This not only exacerbates the housing shortage but also makes it much harder for tenants to secure long-term, stable housing. Most tenants I speak to in both my role and private life want that security. Has anyone stopped to actually ask them?
The Expertise Gap: A Silent Dismissal
Perhaps the most troubling aspect of the Renters’ Rights Bill is the government’s apparent unwillingness to consult with those who understand the market best. Property professionals, landlords, and housing experts navigate these challenges daily, offering invaluable insights that are being overlooked.
This disconnect was starkly highlighted during Goodlord’s debate, hosted by William Reeve where National Residential Landlords Association – NRLA‘s Ben Beadle expressed frustration at remarks from the Shadow Secretary of State. The claim that the sector had been “quiet” during the development and introduction of this legislation reflects the consequences of a top-down approach.
Such comments underscore how poorly conceived policies, crafted in isolation, risk not only being short-sighted but also dangerously destabilising to the market.
The Ripple Effect
When landlords exit the market and disputes escalate, the impact isn’t confined to individual tenants or property owners. Housing shortages drive up rents across the board, making affordability a universal challenge. Local authorities are left to absorb the fallout, with more families turning to social housing, a sector already stretched to its limits. If the PRS continues to lose landlords, the burden on the government to house displaced tenants will become unsustainable. Quite simply, there is no alternative path
A Path Forward: Pragmatism Over Ideology
Do we need to accept this? Absolutely not. However to be effective, the private rental sector needs more than ambition. It requires policies grounded in collaboration, pragmatism, and a nuanced understanding of the market. We may now be out of time to course-correct but to restore confidence and stability to this vital sector we have to take a more ‘can do’ approach. The clock is ticking.
1. Engage the Experts
Policymakers need to continue to actively seek input from all stakeholders. This includes landlords, tenants, and property professionals. Collaborative policymaking is the only way to ensure legislation is both fair and effective, balancing the needs of all parties and adding our voices and our signatures to the call for change*
2. Educate and Empower
Clear education on rights and responsibilities is essential to building and sustaining trust and reducing disputes. Accessible resources for tenants and landlords, coupled with streamlined conflict resolution processes, are absolutely key. But we also need to up skill ourselves by keeping up to date with all the guides and industry news on this subject. Knowledge is indeed power.
3. Encourage Stability
Incentivising landlords to remain in the market is critical. Tax reliefs, grants for energy efficiency improvements, and fair treatment in policy debates can help retain landlords while ensuring tenants’ rights are protected but only if they are supported and heard.
A Call to Action: Bridging the Divide
The private rental sector is a cornerstone of UK housing. It provides homes for 4.6 million households, a figure set to rise to over 6 million in the coming years. These are not numbers; they are made of people, families, and communities
They cannot thrive under policies that ignore their complexities. Policymakers must open their eyes and ears to the realities of the sector and work collaboratively toward balance, sustainability, and stability.
The stakes are too high for missteps. By ignoring the realities of the rental market, the government risks unraveling the delicate system it aims to improve. When tenants and landlords suffer, the ripple effects touch every corner of society, from overburdened social housing systems to rising homelessness rates.
Good governance demands listening to all stakeholders and crafting policies that serve the collective good. If we fail to course-correct now, the private rental sector will continue to stumble in the dark, until, inevitably, it collapses entirely.
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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