Section 21 to shrink rental sector by 20% with rents to climb 13%

October 3, 2019

The latest report from Capital Economics, commissioned by the National Landlord Association, suggests that the abolition of Section 21 could lead to: –

  • A 20% decline in rental stock across the private rental sector, with those on housing benefit or Universal Credit worst hit with a 59% reduction in available properties.
  • As well as an increase in rental costs for 13% of properties.

Tom Gatzen, the co-founder of room share platform ideal flatmate, commented:

“For far too long there has been an overreliance on the rental sector to house those that can’t afford to buy as a result of the Government’s consistent failure to provide more affordable housing.

We’ve already seen the rental landscape evolve with more renters having to rent rooms rather than outright properties due to high financial barriers, and the abolition of Section 21 will only see this increase as demand grows and the number of available properties declines.

While the latest shake-up of the sector has been done with the best intentions of tenants at its core, such a drastic move needs to be better thought through and complemented with additional policy changes, to ensure the sector remains viable for the landlords that form its foundations.

As it stands, those most in need are in line to be hit the hardest, while the rest of us will see yet more of our income go towards covering our rent.”

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Persistent decline to give way to recovery in 2027

Glenigan’s Autumn 2026 Construction Forecast maintains that sector growth will revive in 2027, despite a challenging year of market stagnation Following a sluggish end to 2026, construction is set to rebound from 2027 onwards as public sector building increases Significant value gains expected for health, education, civils, offices and data centre projects Private and social…
Read More →
Estate Agent Talk

The Plumbing and Electrical Problems That Quietly Kill Sales and Lettings

We’ve all had one of these. The offer’s agreed. Everyone’s happy. The memorandum of sale has gone out, and you’re already mentally banking the fee. Then the buyer’s survey comes back. “Electrics appear dated. Recommend inspection by a qualified electrician.” And just like that, the mood changes. The buyer starts asking about a reduction. The…
Read More →
Breaking News

Rental price and average salary tracker – October 2026

Rental prices rise across most regions as affordability pressures persist Average monthly rents increased in eight of the 11 regions between September and October, with Wales recording the largest rise at 31.1%, followed by the North East at 29.8% and the South West at 7.5%. Scotland, London and the North West were the only regions…
Read More →
Letting Agent Talk

Portfolio landlords have outgrown traditional property management

By Adam Hills, Client Services Director, LRG Living Markets The residential lettings industry still manages many large portfolios as though they’re simply collections of individual tenancies. While that works on small portfolios, but it doesn’t work when landlords own 50, 100 or 200 properties. At that point, the challenge is no longer property management alone…
Read More →
Breaking News

Real-life value of the most famous Christmas film homes

The real-life value of the most famous Christmas film homes, from budget classics to multimillion-pound mansions New research has gathered and analysed the estimated valuations of real homes featured in popular Christmas films, ranking them by cost. The priciest homes are featured in The Holiday, Trading Places, and Home Alone, with Amanda’s home from The…
Read More →
Estate Agent Talk

77% of buyers refuse to buy a flood risk property

Despite 4.7 million English homes facing flood risk New research from Lyons Bowe has revealed that 77% of homebuyers would not consider purchasing a property in a flood risk area, despite more than 4.7 million homes across England currently being deemed at risk of flooding. The findings come as the Government launches a new flood taskforce amid…
Read More →