Anti-landlord policy U-turns abroad spark warnings for the UK

New Zealand and Portugal have U-turned on rental rules after stricter laws triggered huge landlord exits, prompting calls from experts for Labour to rethink its reforms.

The Daily Telegraph reports that New Zealand has reinstated no-fault evictions.

The previous ban, introduced in 2020 under Premier Jacinda Ardern, led to a supply squeeze that forced ministers to change direction.

Since January, property owners can again end periodic tenancies without a specific reason, provided they give 90 days’ notice.

Shorter 42-day notice periods apply if a landlord or a family member needs to move in, while fixed-term agreements can finish without cause at the end of their term.

Portugal cuts landlords’ tax

Portugal is also rolling back restrictions with the government consulting on plans to reduce income tax on residential rents to 10%.

Current rules apply rates between 12.5% and 48% on global earnings, according to PwC.

Under the proposals, rents priced at least 20% below local averages would face a 0% rate, and longer tenancies would benefit from reduced charges, falling to 5% for those over 20 years.

Industry figures say these reversals show what happens when regulation pushes landlords away.

They also argue that Britain risks the same fate.

Renters’ Rights Act

Despite these warnings, ministers are pressing on and for England’s landlords, the Renters’ Rights Act takes effect from May.

It will end Section 21 ‘no-fault’ evictions and leave landlords facing waits of up to eight months to repossess their homes.

More landlords are now selling up and in July, 22% of newly listed homes for sale in London were former rentals, up from 15.6% the previous year.

Supply shortages have driven average asking rents in the capital to a record £2,736.

RRA is a ‘disaster’

Ben Beadle of the NRLA told the newspaper: “This [Renters Rights] is a disaster waiting to happen.

“If landlords are already facing an almost eight-month wait to legally take possession of their homes at a time when the number of claims is falling, then what can we expect when the inevitable avalanche of claims drops post-Renters’ Rights Act?”

Campaigner Paul Shamplina said: “When you look at what New Zealand and Portugal are doing, it is hard not to ask why the UK is heading in the opposite direction.

“We seem to be doing everything possible to make landlords feel unwanted, while still expecting them to house millions of tenants.

“Unless the UK does too, we risk pushing more landlords out and making the housing shortage even worse, which will negatively impact tenants.”

Greg Tsuman, of Martyn Gerrard, said: “New Zealand offers a clear case study of what happens when policy drives private landlords away and how difficult it is to reverse the damage.”

Megan Eighteen, of Propertymark, told the Telegraph: “This example underlines an important lesson for the UK in that increasing regulation and taxation without supporting landlords risks shrinking supply and driving up rents.”

She added that overseas governments recognise ‘that landlords play a crucial role in housing delivery’.

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