More than a third of landlords head for the exit as Renters’ Rights Bill sparks uncertainty
7 months ago | 13 comments
Housing Minister denies Renters’ Rights Bill will harm supply
12:02 AM, 1st October 2025, 6 months ago
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Despite Housing Minister Matthew Pennycook claiming the Renters’ Rights Bill is “fit for purpose”, a report by an influential committee tells a different story.
In answer to a written question about the impact the Renters’ Rights Bill will have on the supply of private rental properties, Mr Pennycook denied the bill would have a harmful impact on future supply.
However, as previously reported by Property118, the Renters’ Rights Bill is fforcing many landlords to leave the market, in turn hurting supply.
Renters’ Rights Bill is fit for purpose
Responding to the written question, Mr Pennycook claimed good landlords will have nothing to fear and will continue to invest and operate in the private rented sector.
He said: “The government published an Impact Assessment for the Renters’ Rights Bill on 22 November 2024. It received a ‘Green’ rating from the Regulatory Policy Committee, indicating that it is ‘fit for purpose’.
“While we acknowledge that it will take time for the sector to adjust to a significant change in regulation, we do not believe that our Renters’ Rights Bill will have a harmful impact on future rental supply.”
He adds: “Although landlords have been aware of successive governments’ plans to reform the private rented sector since 2019, the size of the sector as a whole has remained broadly stable since 2013-14.
“The bill will make sure good landlords have the confidence they need to continue to invest and operate in the sector. We will continue to work with good landlords and their representative associations throughout implementation.”
The impact assessment has not adequately considered the potential costs for landlords
However, a closer look at the Regulatory Policy Committee’s (RPC) assessment reveals a more mixed picture. While the Renters’ Rights Bill was rated overall as “fit for purpose,” several sections, including those on wider impacts and the cost-benefit analysis, were given only a “weak” rating.
In its report, the RPC criticised the government for failing to properly consider the costs the bill will impose on landlords.
It warned: “The impact assessment has not adequately considered the potential costs, as well as impact upon the quality of private rental housing, of making the PRS market more illiquid.
“For example, if landlords are less able to evict tenants (as a result of the abolishment of section 21 evictions), as well as less able to invest in the quality of the property to compete in the market and attract higher rents, then it is likely that these landlords would only invest to the minimum regulatory standard and quality of the rental housing stock could fall, which must be considered alongside the growing need for new, in particular affordable, housing.”
Ombudsman fee will proportionate and good value
The committee also said the government’s Impact Assessment (IA) needed to look more closely at the cost-benefit implications of the Ombudsman scheme.
The document says: “The impact assessment would also benefit from clarifying some parts of the cost-benefit analysis for the Ombudsman measure.
“For instance, it is not clear why the annual registration fee has been divided by 10 and the department could provide some clarity on why staff costs to run the Ombudsman have not been included in the analysis, and whether these are funded by the fees paid by landlords.”
As previously reported by Property118, Mr Pennycook claims the Private Rented Sector (PRS) Ombudsman will not be able to make a profit and the fee will be “proportionate and good value”.
The government has hinted at combining the registration process for the PRS database and Ombudsman, but stopped short of confirming whether landlords will be required to pay separate fees for each scheme.
Tags:
Housing Minister, Landlords, Matthew Pennycook, Private Rented Sector, PRS, rental supply, renters rights bill, Section 21 Evictions
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Member Since September 2015 - Comments: 1013
8:28 AM, 4th October 2025, About 6 months ago
Reply to the comment left by Property One at 01/10/2025 – 10:42
… you mean “Pettycrook”
Member Since January 2023 - Comments: 142
10:37 AM, 4th October 2025, About 6 months ago
As with so many interventions it is doing more harm than good. A lot of landlords calling it a day has meant that supply has constricted. Selective licensing pointless where the landlord is of quality just a waste of everyones time and money. A tip for the local authority perhaps?
Member Since September 2024 - Comments: 33
3:16 AM, 5th October 2025, About 6 months ago
This Labour government is an absolute disaster. Their incompetence is dragging Britain down with every passing day — wrecking what’s left of our economy, hollowing out trust in leadership, and fuelling national decline. We didn’t vote for this chaos. The PM, C@ck and his pack of cronies are completely out of touch, peddling empty rhetoric while ordinary people suffer the consequences. It’s not just failure — it’s betrayal. They need to be thrown out before they do irreversible damage. Britain cannot afford another day under this useless excuse for a government
Member Since October 2025 - Comments: 3
5:48 AM, 5th October 2025, About 6 months ago
We have been landlords for over 35 years.We have provided excellent properties to tenants many of which we still have as contacts.
We have used Section 21.It was always used with no problems.The tenants knew they were at fault and it saved alot of unnecessary back and forth of accusations.What do you do when a tenant is keeping cans of fuel on the balcony.Spend months getting him to admit it even though neighbours have reported it and there is photographic evidence.No– serve a Section 21.Clear cut and relatively painless to both parties.This bill is concocted by people who have not consulted good landlords and have taken the tenants part every time.The result— good landlords will not have the means to protect their excellent properties and will leave.Many we know are doing just that.We will probably join them.Section 21 always allowed tenants and landlords to part ways without protracted aggression.The future is grim.Someone has co
c@ked it up.Sorry did I say that.
Member Since March 2024 - Comments: 281
8:04 AM, 5th October 2025, About 6 months ago
Reply to the comment left by Jag at 05/10/2025 – 03:16
Here follows the Green Party’s Six Step Plan to Abolish Landlords;
Introduce Rent Controls and Abolish Right to Buy. (HO401, HO503)
Abolish Section 21 Evictions and make all rental agreements secure long-term tenancies that can only be terminated by the tenant. (HO519)
Tax the Landlords – move towards a Land Value Tax levied on Owners, not Tenants. No Exceptions. Business Rates on AirBnBs/Short Lets. No Exceptions. Double taxation for empty properties. Put National Insurance on Private Rents. (HO401, EC780-2)
Remove finance for Landlords – end Buy to Let mortgages. (HO521)
Provide government backed finance to tenants. Give tenants First Right to Buy when Landlords sell, with their total rent paid discounted.
Provide finance to Councils. Councils should be given Second Right to Buy when Landlords sell, or property that hasn’t been insulated to EPC rating C or fails to meet the decent homes standard, or any property that is left empty for more than six months, with the total current tenancy discounted, tenants moved to a truly affordable Council tenancy. Government must change prudential borrowing requirements to allow Councils to buy back and build new housing on a massive scale. (2024 Manifesto Pg9).
And judging from the above which the Greens are debating at their conference, they are going even further to the left (following Osborne’s positioning of the Tories on the left from 2015 and Labour’s efforts to take that further.
Leaving the centre ground of common sense policy to reflect that the majority of landlords and tenants co-exist tolerably well, if allowed by market forces that balance supply and demand, wide open for any party who wish to take it.
It can’t be too long before a critical mass of tenants realise that attacking their landlords is leaving them as collateral damage.
Member Since May 2014 - Comments: 616
1:47 PM, 5th October 2025, About 6 months ago
Reply to the comment left by Jag at 05/10/2025 – 03:16
You are spot on!
This useless government should go asap.
It has got to the stage where I am leaving some properties empty and I have become very choosy about who I hand the keys to.
Member Since September 2024 - Comments: 33
12:33 PM, 6th October 2025, About 6 months ago
Reply to the comment left by Keith Wellburn at 05/10/2025 – 08:04
Oh well they’ve never won an election, so there’s not much reason for concern. Their ideas are unlikely to move beyond the page.
Member Since September 2015 - Comments: 1013
12:37 PM, 6th October 2025, About 6 months ago
Reply to the comment left by Jag at 12:33
…just so long as they never hold the balance of power!
Member Since September 2018 - Comments: 3508 - Articles: 5
2:12 PM, 6th October 2025, About 6 months ago
Housing Minister denies Renters’ Rights Bill will harm supply.
Looks like I will be one of many bursting his bubble then….