Incentivise investment or face worsening housing crisis, NRLA warns

Following reports that the Home Office intends to encourage private landlords to house asylum seekers using five-year guaranteed rent deals, the NRLA has issued it response to this announcement.

The reports indicate that Serco, one of several contractors responsible for undertaking work for the Home Office, plans to call on landlords in the North West, Midlands and the East of England to come forward.

In response to this news, Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), commented:

“The Government’s reliance on the private-rented sector to house those in the greatest need is nothing new. However, the Home Office’s use of private landlords highlights the growing shortage of available homes and the lack of consistency between government departments.

“Whilst half of Whitehall is scrabbling to hit housing targets and find accommodation for potentially homeless households, the other half seems hell-bent on devising ways to dissuade investment in homes.

“If the Government is serious about meeting housing need, and growing our way out of the current crisis, then it needs to incentivise investment. Landlords need the confidence that both the regulatory and tax regime will allow them to plan and to flourish. Without this the market will continue to stagnate, and demand will further outstrip the limited supply of housing available.”

-ENDS-

Notes

• According to the Telegraph, the Home Office has launched a drive for landlords to house asylum seekers, with Serco – a private contractor working for the Home Office – reportedly offering landlords five-year guaranteed rent deals.
• According to the property portal, Zoopla, there are now an average of 12 renters are currently chasing each home for rent, higher than pre-pandemic levels.
• According to the most recent English Housing Survey data there are around 4.7 million households in the private rented sector in England.
• Research by Savills suggests that up to one million new homes for private rent will be needed by 2031 to accommodate growing demand.
• The Government’s most recent English Private Landlord Survey notes that: “Landlords in 2024 (31%) were more likely than in 2021 (22%) or 2018 (16%) to say that they were planning to decrease the number of properties/sell them all, with a corresponding decline in the proportion of landlords who said they would keep their portfolio size the same. The proportion of landlords saying they would increase their portfolio was lower in 2024 (7%) compared with 2021 and 2018 (both 11%).”
• The Renters’ Rights Bill, in its current form, risks discouraging investment in the private rented sector. Full details of the amendments to the Renters’ Rights Bill the NRLA is supporting, with background information for each, can be accessed here.
• In February, the Government published a consultation on proposals to improve the energy efficiency of private rented housing. It included no proposals to support the investments required in energy efficiency works. This is despite calls by the Committee on Fuel Poverty for just that. Last year, the Committee said in a letter to the previous Government: “Currently the major energy efficiency programmes are targeted at the owner occupier sector (e.g. Energy Company Obligation, Home Upgrade Grant, Great British Insulation Scheme) or the SRS (Social Housing Decarbonisation Fund). Previously the Committee on Fuel Poverty argued that the PRS be treated as a commercial sector as landlords are effectively managing a business that should meet required standards. Landlords could be helped to meet these standards through tax offsets for improvements, loans or potentially grants for landlords with a low profit margin in areas of low rental value.”
• Responding to the Budget last year Paul Johnson, Director of the Institute for Fiscal Studies, said on X: “I have long said stamp duty is among our worst taxes. So what do we have? An increase for those buying second properties. You might think fine: a tax on rich people and landlords. But those looking to rent will pay part of the cost as fewer properties made available. I despair...”.
• Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.