Generation Rent dismisses landlord exodus claiming landlords can just leave

Generation Rent claims “it’s no problem if landlords want to leave the market,” despite the ongoing housing crisis.

Chief executive, of the tenant group, Ben Twomey, made the bold claim during a Work and Pensions Committee session on local housing allowance rates.

Previously, Property118 reported the National Residential Landlords Association (NRLA) spoke at the same committee, warning that landlords are facing rising costs and that dozens of tenants chasing every rental property is causing a drop in supply.

Not a problem if landlords want to leave

Danny Kruger, Shadow Minister for Work and Pensions, questioned Mr Twomey’s stance on the Renters’ Rights Bill.

Mr Kruger says that whilst he can understand the arguments for the abolition of Section 21, the number of landlords leaving the market could cause huge rent increases.

Mr Kruger asked: “You are aware of the number of landlords who are talking about quitting the rental market. Should the government do anything to mitigate the danger of landlords leaving the rental market?

“Maybe it will end up with more housing for sale for you and others, but surely that is a major driver of the rent increases we see.”

However, Mr Twomey appeared unconcerned about landlords leaving the rental market.

He told the committee: “In the long term, it is no problem at all if landlords want to leave the market. We certainly do not want to twist arms to keep landlords who do not want to be letting in the market.

“It is not a problem in the long term because the bricks and mortar of those homes do not sink into the ground. They will hopefully be available for first-time buyers, for example. They could also be bought by another landlord who will continue to rent it out.”

Right protections in place so that evictions are legitimate

Mr Twomey admitted that in the short term, landlords leaving do cause problems, particularly with evictions.

He adds: “In the short term, the problem is that it often causes evictions, because most landlords do not sell with tenants in situ.

“We are keen that the bill passes as soon as possible to end section 21 no-fault evictions and to make sure that we have the right protections in place so that evictions are legitimate if they happen.

“There will still be a way to evict for sale, but the notice period will be four months as opposed to two months at the moment, which gives tenants more time to find another place.”

The full clip with Mr Kruger and Mr Twomey can be seen below