0:01 AM, 11th July 2025, About 5 months ago 8
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Should the government implement rent controls through the Renters’ Rights Bill then landlords will simply stop investing, a survey reveals.
The findings from Landbay show that when asked about rent caps, 37% of landlords said they would halt investment in their properties.
With England’s PRS encompassing 4.7 million properties, this could mean 1.75 million homes face reduced maintenance and upgrades if the Bill becomes law.
While the Bill is aimed at boosting tenant protections, issues such as mandatory two-month notice periods for rent rises have raised fears among some landlords.
Landbay’s sales and distribution director, Rob Stanton, said: “Rent controls, while well-intentioned, risk driving landlords out of the market or into workarounds that undermine the very tenants they aim to protect.
“We’re staring at a future where quality rented housing dwindles.
“If 350,000 landlords, with roughly 750,000 properties, leave the private rented sector, and landlords stop investing in 1,750,000 properties, at least 44% of England’s remaining private rented sector will face neglect and under investment.”
Landbay’s survey also revealed that 16% of landlords plan to sell their entire rental portfolios, potentially removing 750,000 properties from England’s PRS if the Renters’ Rights Bill passes.
Also, 12% of landlords admitted they might evade regulations to maintain market-level rents.
The lender points to Berlin where a five-year rent freeze distorted the rental market, cutting available listings by over half.
Landlords there converted properties to owner-occupied units, modernised to bypass rules, sold off, or left units vacant, hoping for policy changes.
New construction in Berlin slowed as the private rented sector became less appealing to investors.
Existing tenants clung to rent-capped flats, making it harder for newcomers and young renters to find homes.
In New York City, rent caps have led to a black market, with illegal sublets and ‘key money’ payments emerging.
San Francisco’s rent controls reduced rental housing supply by about 15%, according to one study.
Rent-controlled buildings there saw a 25% drop in tenant turnover, deepening income inequality by favouring long-term tenants.
This created a divide between “housing haves” and “have-nots,” disproportionately affecting younger and lower-income renters.
Mr Stanton said: “The data from Berlin, from New York, and from San Francisco screams caution—capping rents distorts markets, slashes supply and creates black markets.
“Landlords aren’t the enemy; they’re responding to a market being squeezed dry.
“Ignore the evidence, and we’ll all pay the price. This is very bad news for the government.”
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Ryan Stevens
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Member Since January 2024 - Comments: 276
11:14 AM, 11th July 2025, About 5 months ago
You don’t need a survey to confirm this. It is common sense.
Unfortunately Governments don’t have any common sense, so they think rent caps are a great idea!
Beaver
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Member Since May 2018 - Comments: 1959
12:32 PM, 11th July 2025, About 5 months ago
Reply to the comment left by Ryan Stevens at 11/07/2025 – 11:14
This Is Money just reported that homes for sale are at a seven year high as landlords flood the market:
https://www.thisismoney.co.uk/money/mortgageshome/article-14894329/Homes-sale-seven-year-high-landlords-flood-market.html
It quotes the latest survey from RICS:
“The latest market survey by the Royal Institution of Chartered Surveyors (Rics) suggests landlords are heading for the exit amid higher interest rates, increasing regulation and the upcoming Renters’ Rights Bill.”
It seems that there are two chickens coming home to roost here…one was George Osbornes policy from stopping landlords from offsetting their interest against rents and the other is the Renters Reform Bill.
On top of those two chickens we’ve seen the effect that SNP rent caps have in Scotland.
None of this increases the supply of residential accommodation, and it all drives rents up.
Ryan Stevens
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Member Since January 2024 - Comments: 276
12:38 PM, 11th July 2025, About 5 months ago
The next chicken will be the EPC rating changes.
Beaver
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Member Since May 2018 - Comments: 1959
14:14 PM, 11th July 2025, About 5 months ago
Reply to the comment left by Ryan Stevens at 11/07/2025 – 12:38
It will be the next chicken to fly home and give tenants a hard time. Banning landlords from renting out houses below band C will only further constrain the supply of rental accommodation and drive rents up.
The government should be getting the CMA to take another look at this.
Ryan Stevens
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Member Since January 2024 - Comments: 276
15:19 PM, 11th July 2025, About 5 months ago
The government would be worried about anything being reviewed, it might be a negative review, suggesting that the government is idiotic, so that will not happen!!
Desert Rat
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Member Since May 2024 - Comments: 162
5:07 AM, 18th July 2025, About 5 months ago
Reply to the comment left by Beaver at 11/07/2025 – 12:32
Beaver,
it only takes a quick look on right move to see how many landlords are offloading houses or repossessions are up for sale.
The ones with tenants in situ are being offered at low prices and are not selling.
House prices could be about to crash after the RRB and EPC C kick in.
I’m guessing this is what the government want because otherwise they are either stupid or in denial of what they are doing to the housing market.
I wonder how they are going to deal with all of the benefit tenants that they are making homeless, any houses not sold will get let to Serco and then they pay even more to rent them to Immigrants.
Reluctant Landlord
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Member Since September 2018 - Comments: 3338 - Articles: 5
9:44 AM, 18th July 2025, About 5 months ago
the word ‘invest’ in the same sentence as ‘landlords’ is stretching it somewhat.
This has not been the case for a while and I don’t forsee this changing anytime soon.
BTR LL’s are stalling builds and even large orgs are selling off their PRS arms. Councils who stupidly set up their own PRS (shell) companies are also effectively dumping and running. Norwich is the latest I think – costing the taxpayer millions of not billions. They just sold the lot off for less than it cost them to build the blood properties 10 years ago. Another clear reason why no council should be setting up such companies. They are simply inept. Think of all the betterment that could have been achieved in their own existing council properties….
Beaver
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Member Since May 2018 - Comments: 1959
10:51 AM, 18th July 2025, About 5 months ago
Reply to the comment left by Desert Rat at 18/07/2025 – 05:07
I think when people like Angela Rayner are in government they don’t really care about what the real effect of what they are doing is; but the Competition and Markets Authority should.