Landlords selling up growing challenge for tenants

The number of households in the private rented sector at risk of homelessness due to landlords selling up has increased by a third since the end of last year.

The analysis by the National Residential Landlords Association (NRLA) highlights the need to encourage responsible landlords to stay in the market.

According to government data, between October and December 2023, 5,400 households in the private rented sector in England qualified for council support to prevent homelessness after their landlord decided to sell the property. The most recent data shows that between April and June 2024, this number had increased to 7,130 households. 

The figures show that selling a property is the single biggest reason for a landlord to end a tenancy, and almost three times bigger than the next most common reason.

Whilst the Renters’ Rights Bill will increase the time before a landlord can sell a property, the NRLA argues that more needs to be done to encourage responsible landlords to keep rental properties in the first place.

Government data shows that a third of landlords (31 per cent) are planning to sell properties they rent out in the next two years, up from 22 per cent. In contrast, just 7 per cent say they are planning to provide new homes to rent in the next two years, compared with 11 per cent in 2021.

It comes as an average of 21 people are chasing every available home to rent.  

The NRLA is calling on the Government to reform the way rented housing is taxed to support and encourage the supply of new, decent quality homes on the market. 

Alongside this, responsible landlords need confidence that when ‘no fault’ repossessions end, legitimate possession cases will be processed far more swiftly by the courts than at present. The NRLA is therefore calling on the Government to publish a clear plan to improve what the Housing Minister accepts is a court system “on its knees.” 

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Right across the country it is tenants who are suffering as landlords decide to sell up. No amount of changing the rules about when landlords can sell will address the central problem in the rental market, namely a chronic shortage of homes to meet demand.

“What tenants need is greater choice. That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing.” 
 

-ENDS-
 

Notes:

•    In October-December 2023, the end of a private rented Assured Shorthold Tenancy was the most common reason for households in England being owed a homelessness prevention duty, accounting for 12,750 households. The most common recorded reasons households were owed a prevention duty due to the end of an AST were related to: landlord wishing to sell the property (5,400), followed by landlord wishing to re-let the property (2,470). See here. 

•    In April-June 2024, the end of a private rented Assured Shorthold Tenancy was the most common reason for households being owed a homelessness prevention duty, accounting for 15,350 households. The most common recorded reasons households were owed a prevention duty due to the end of an AST were related to: landlord wishing to sell (7,130) or relet the property (2,810). See here.

•    According to the Government’s English Private Landlord Survey for 2024:

-    In 2024, 31% of landlords reported planning to decrease the size of their portfolio in the next two years, including 16% who were planning to sell all their properties. In 2021 and 2018, the proportion of landlords who reported planning to decrease the size of their portfolio was 22% and 16% respectively.
-    7% of landlords in 2024 reported planning to increase their portfolio in the next two years, compared with 11% in 2021 and 12% in 2018.

See here.

•    According to Zoopla, there are 21 people competing for every rental property, more than double pre-pandemic levels.  See here. 

•    Speaking at Committee Stage of the Renters’ Rights Bill in the House of Commons, the Housing Minister, Matthew Pennycook MP, accepted that “the court system is on its knees.” See 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.