Landlord confidence has hit record low NRLA tells Renters’ Rights Committee
NRLA Chief Executive Ben Beadle has warned a cross-party group of MPs that landlord confidence is at a record low, which could have a catastrophic impact on the supply of homes to let.
Ben made the comments this morning while giving evidence to the Renters’ Rights Bill Public Bill Committee alongside Theresa Wallace, Chair of the Lettings Industry Council.
He gave the stark warning at the same time as telling the committee that the country’s County Courts system is ‘on its knees’ and needs significant reform if it is to cope post Renters’ Rights Bill.
He told the committee: “We have been tracking sentiment of our members for the last 12 years and it’s at a record low, with only about 10% of landlords actively looking to invest and around a third looking to dispose of properties or exit the sector completely.
“We can see this in the significant number of sections 21s being used where the reason is the landlord is selling.”
The evidence session was part of the Committee Stage of the Bill’s progression through Parliament, in which interested parties give evidence on its likely impact and are quizzed by MPs.
Asked whether he considers current rent levels ‘fair and affordable’ Ben agreed the 8.4% increase we have seen to September 2024 is ‘high by any measure’, but said a lack of stock and the lack of properties coming to the rental market is the reason prices are being pushed up – problems the Bill will only exacerbate.
He said: “It can’t be normal that 21 people are competing for each property to let… the market is not normal, and issues are not going to be resolved by this Bill.
“There’s lots of good stuff, but it tinkers round the edges of the fundamental issue here which is supply … We need a vibrant private rented sector.”
Court reform
Ben used the session to call for vital court reform to ensure landlords can take back possession of their homes in a timely fashion in legitimate circumstances. When asked what reform should look like Ben stressed the need for courts to:
- Sift cases more appropriately
- Digitalise the court process
- Automatically link successful possession orders to the bailiffs’ service.
He added: “We are currently waiting seven months on average to get possession of our homes – and that’s fast tracked. When we move to section 8, [using grounds] it will require more resource and more scrutiny – without this we are not going to see further investment.
“Our argument has always been about confidence and striking a balance.”
Arrears and notice periods
Ben told the committee the association does not oppose the abolition of section 21 provided the replacement is fair and workable, but has concerns the Government has reneged on promises for ‘robust grounds’.
He flagged major concerns about plans to increase the level of arrears a tenant can build from two to three months before landlords can serve notice and double the notice periods landlords must give.
He called for the Government to introduce a pre-action protocol that would mean issues could be nipped in the bud much earlier, pointing out that once the situation has reached such an advanced stage it’s almost impossible to recover the tenancy.
He also called for Ministers to reinstate the effective six-month notice period included in the previous administration’s Renters (Rights) Bill, which would be fairer to landlords, prevent homes from being easily moved into the more lucrative short term lets market and would support student landlords.
Theresa Wallace, speaking alongside Ben agreed landlords are ‘scared’ by the Bill and are already leaving the sector with demand up and supply down.
She said this is not just impacting rents, but the tenants able to secure tenancies, warning it is those the Bill was designed to help that are the ones who are being penalised.
More information
To watch the evidence session, click here. Ben and Theresa were the first to appear at the 9.30am mark.
For all the latest on the Bill’s progression through parliament check out our Renters’ Right’s Bill Hub here.
We held the latest in our Renters’ Rights Bill webinar series last week, reflecting on the Bill’s Second Reading on 9 October. To watch the recording click here.
