Landlords selling up biggest threat to renters
Landlords selling properties represent the single biggest threat to renters according to government data.
Among households eligible for support from their council to prevent homelessness following the end of a private rented tenancy agreement, 45 per cent needed help because their landlord planned to sell the property in the second half of 2023. This was more than twice as much as the next most common reason for the end of rental tenancies which was landlords planning to re-let the property.
The news comes in the wake of concerns raised by tenant group Generation Rent, who have warned that “landlords selling properties is a leading cause of homelessness.”
With Peers today due to debate the Renters (Reform) Bill for the first time, new data published by the NRLA further exposes the scale of the supply crisis across the private rented sector.
A poll of landlords for the NRLA has found that 83 per cent reported that demand for rental properties by tenants is ‘strong’. The same survey saw 31 per cent say they plan to cut the number of properties they rent out, compared with just nine per cent who plan to increase the number of properties to let.
The findings are supported by recent Rightmove data which indicates that 50,000 properties are needed to bring the supply of rental homes back to pre-pandemic levels.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Landlords selling up is the single biggest challenge renters face. The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.
“As Peers debate the Renters (Reform) Bill, it is vital that it works for landlords as well as tenants. As it stands it would achieve this balance. We are calling on Peers to support the Bill to give the sector certainty about the future.
“More broadly, all parties need to accept widespread calls for policies to boost supply in the private rented sector.”
-ENDS-
Notes:
• The Government’s statutory homelessness statistics show that between July and December 2023 the end of private rented Assured Shorthold Tenancy (AST) was the most common reason for households being owed a homelessness prevention duty by their council, accounting for 27,090 households. The most common recorded reasons households were owed such duty due to the end of an AST were related to:
- Landlord wishing to sell the property (12,100 – 45%)
- Landlord wishing to re-let the property (5,170 – 19%)
View source here.
• The tenant group, Generation Rent, has warned that: “Landlords selling properties is a leading cause of homelessness.”
• Pegasus Insight undertook 774 online interviews with landlords who are current members of the NRLA between the 10th March and 1st April 2024.
• Rightmove’s most recent Rental Trends Tracker noted that: “50,000 rental properties are needed to bring the supply of rental homes back to pre-pandemic levels.”
View source here.
• In a letter to the Chancellor in November the cross-party District Councils Network called for policies “to stimulate retention and supply in the privately rented sector.”
View source here.
• 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
