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