Housing Minister dismisses fears that regulation will force small landlords out

Housing Minister dismisses fears that regulation will force small landlords out

Silhouetted landlord walking through glass doors marked with exit and rejected symbols, suggesting leaving the rental market
9:50 AM, 14th January 2026, 4 months ago 53

Housing Minister Matthew Pennycook has rejected claims that more regulation will drive small landlords out of the market.

During a debate in Parliament, Conservative MP Edward Leigh warned that imposing more regulations on small landlords would cause them to leave the private rented sector, ultimately harming vulnerable people.

However, Mr Pennycook said that “not all regulation is bad” and argued that under the Renters’ Rights Act, landlords would be able to rely on simpler grounds for possession.

Do not accept that all regulation is bad

In oral questions to the Housing, Communities and Local Government, Mr Leigh asked Mr Pennycook whether regulations could cause more harm than good.

He asked: “We all know that rent inflation is caused by over-demand and lack of supply, and we can agree on the need to address problems by building more houses and tackling immigration.

“Does the Minister agree that the more controls and regulations are imposed on landlords, particularly small landlords, the more they will get out of the rented sector altogether, causing less supply and rent inflation, which will hit vulnerable people?”

In response, Mr Pennycook claimed the build-to-rent market will form an important part of the market in the coming years.

He said: “I do not accept that all regulation is bad. In many ways, we have clarified and made simpler the grounds for possession that landlords can use under the Renters’ Rights Act, but he is absolutely right to say that we need more supply of all homes, including in the private rented sector, and that we need to support the build-to-rent sector, which will be an important part of the market in coming years.”

Government does not support rent controls

Elsewhere during the debate, Labour MP Dan Carden welcomed the Renters’ Rights Act power to tackle unfair rent increases but was concerned that market rents would be used as a benchmark to prevent unaffordable rents from rising, and called for rent controls.

In response, Mr Pennycook claimed rent controls were not part of the government’s plan.

He said: “We will of course, keep the implementation of the Act under continual review, but, as I have said, it allows tenants to challenge unreasonable rent increases at the first-tier tribunal, which will make a judgment on whether the increases are fair and meet that market-rate definition.

“We have, however, made it clear that the government do not support the introduction of rent controls, including rent stabilisation measures, for the reasons that we debated at some length during the passage of the bill.”

You can watch Mr Pennycook’s response to Conservative MP Edward Leigh below.

 


Share This Article

Comments

  • Member Since May 2014 - Comments: 88

    11:09 AM, 14th January 2026, About 4 months ago

    Reply to the comment left by Alexandra at 14/01/2026 – 10:15
    From a LL point of view that’s encouraging to read. Out of interest, where’s the property you’ve had 90 applications for?

    I live near Reading and have noticed a definite slowdown in demand – around here rents have stabilised and the supply/demand balance seems to be more even.

  • Member Since August 2020 - Comments: 19

    11:26 AM, 14th January 2026, About 4 months ago

    He is blind & deaf to what Is happening on the ground. As I read comments in Property 118, several small LLs are talking about exiting, including myself, for reasons of harsher civil penalties and court passing high fines and deciding in favour of tenants for reasons of commas & semicolons.
    Whole system is working against the small landlords. The corporates have resources to fight against the system to survive but one the accidental LLs with 1-2 properties

  • Member Since July 2020 - Comments: 29

    11:28 AM, 14th January 2026, About 4 months ago

    These guys are devoid of any commercial acumen – just socialist envy that drives the inevitable levelling down of society. Just wait to see how this place crumbles over the next three years.

    Nobody sees any value in economic enterprise or risk taking anymore in the UK. I speak to small business owners everyday. EXAMPLE: One chap I spoke to is a two man band – and hired their first staff. But here’s the catch – he hired in South Africa!!! Too petrified of being caught by new employee rights and taken to court. This is repeated again and again in conversations I have. This government are DESTROYING our amazing country in every way. Marxist zealots.

    Utterly disgraceful. Sickening for a true patriot. Unfortunately. I don’t see any way back for the UK now. They have institutionalised woke and socialist ideology into courts, civil service, schools, judiciary….countless unaccountable quangos. No government can change that machinery at heart of state. Will take a brace soul to try and reverse this mess.

    As for me – I’m selling whatever property is not nailed down. Regret ever investing into this. Buffoons only think there is not a seismic change under way. Even BTL lenders dropping rates to fight over what little business there is now.

  • Member Since May 2017 - Comments: 771

    11:48 AM, 14th January 2026, About 4 months ago

    I’m selling – the process is in full swing
    If you look at the pictures on rightmove lots of property for sale are either messy, tenant still in situ or empty tenant has left.
    This country has gone to the dogs
    Vote Reform

  • Member Since May 2014 - Comments: 620

    12:07 PM, 14th January 2026, About 4 months ago

    Pennycook continues extolling the virtues of BTR .
    George Osborne became a part time adviser to Blackrock when he left government and I wonder what Pennycook will do when they are kicked out in 3 years time.
    His response to Edward Leigh was unconvincing.

  • Member Since July 2013 - Comments: 755

    12:40 PM, 14th January 2026, About 4 months ago

    Pennycook is an idiot, pure and simple. He is condemning many tenants, particularly the most vulnerable and least wealthy, into a very uncertain and possibly unpleasant future of temporary and unsuitable accommodation.

    Frankly, I don’t believe he is in touch with reality – he’s not listening and is simply grandstanding to justify himself, his career and the RRA, despite those of us who are actually current housing providers (not prospective) telling him the facts.

    Millions of taxpayer £££ will be spent needlessly on supporting poorer tenants. I suspect when small LLs have exited we will see really stiff rent increases, when the BTR crowd control the market.

  • Member Since January 2021 - Comments: 52

    12:57 PM, 14th January 2026, About 4 months ago

    Reply to the comment left by Neil P at 14/01/2026 – 11:09
    We are in Norfolk. I would say to be fair that for various reasons the house was up for rent for longer than normal to reach the almost 90 applications mark and it would have been less applicants if the property had been on the market for a shorter period. Before Christmas as expected it was very slow but that just afforded us some time to do some extra improvements and, as I have found in other years, it sped up again in the NY with 4 or 5 applications a day for a 2 bed house. I would agree that rents are fairly stable.

    As said in my original post one of the things I am seeing however is the large % of applicants who have been handed a S21 due to their Landlord selling. I am also seeing an even greater number of applications whom sadly I cannot consider due to affordability or other circumstances. My impression is that there is an ever expanding pool of would be tenants that are perhaps not ideal for one reason or another. Prior to this legislation and a more buoyant market these applicants might have found a home but they are now finding themselves at the bottom of the heap when it comes to securing a rental. That pool seems to be growing as the availability of properties shrinks and landlords facing both the RRB and the threat of fines from local councils are either selling up or being very very careful to choose gold plated tenants. I have also had people apply who are downsizing as their rents have risen and they can no longer afford say a 3 bed house and want to move to a smaller cheaper property often with 2 or more children. Its a pretty unforgiving market for both Landlords and tenants…but the government including my own MP were warned and warned…!

  • Member Since September 2018 - Comments: 3550 - Articles: 5

    1:14 PM, 14th January 2026, About 4 months ago

    B2R will completely prevent access to those currently on benefits or in in temp accommodation etc due to not meeting the affordability criteria.

    With those dependant on benefits increasing day by day and the government accounting for this (as per last Fudget), I find it unbelievable that no one has asked the most obvious question…

    who is going to house these people along with all the illegal immigrants they give refugee status to, if B2R will not?

  • Member Since September 2018 - Comments: 3550 - Articles: 5

    1:17 PM, 14th January 2026, About 4 months ago

    Reply to the comment left by SGhai at 14/01/2026 – 11:26
    whether ‘small’ portfolio LL’s leave or not, the reality is the B2R sector don’t/wont be housing any benefits/homeless/vulnerable/refugees/disabled either now or in the future.

    Who houses them and where?

  • Member Since September 2018 - Comments: 3550 - Articles: 5

    1:19 PM, 14th January 2026, About 4 months ago

    Reply to the comment left by Alexandra at 14/01/2026 – 12:57
    ….and then when this happens….oh the irony….the space standards means you can’t offer a tenancy when the rules on ‘overoccupancy’ apply as per Housing Act or if the property is in a SL area!

Have Your Say

Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.

Not a member yet? Join In Seconds


Login with

or

Related Articles