Landlord sell off leaving tenants high and dry
The number of private rented sector households at risk of homelessness is up by a by a third since the end of last year as a result of landlords selling up.
The analysis by the National Residential Landlords Association highlights the need to encourage responsible landlords to stay in the market to provide the vital homes to let the country needs.
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.
Selling off homes
The figures show that selling a property is the single biggest reason for a landlord to end a tenancy, almost three times higher than the next most common reason.
Whilst the Renters’ Rights Bill will mean landlords cannot sell a property in the first 12 months of a tenancy, 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 seven 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 Section 21 ‘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.”
NRLA Chief Executive Ben Beadle 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.”
