Landlords selling up is fuelling the homelessness crisis – NRLA

The number of tenants facing homelessness due to landlords selling up has soared by a third since the end of last year, the National Residential Landlords Association (NRLA) reveals.

It says that between October and December 2023, 5,400 households in the private rented sector (PRS) in England were forced to seek council support after their landlord decided to sell.

This figure has since risen to 7,130 households between April and June 2024.

Selling a property has emerged as the primary reason for landlords ending tenancies – that’s nearly three times more than the next reason.

‘Landlords decide to sell up’

The NRLA’s chief executive, Ben Beadle, said: “Right across the country it is tenants who are suffering as landlords decide to sell up.

“No amount of changing the rules about when landlords can sell will address the central problem in the rental market, namely a chronic shortage of homes to meet demand.”

He added: “What tenants need is greater choice.

“That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing.”

Notice period before landlords can sell

While the upcoming Renters’ Rights Bill will extend the notice period before landlords can sell, the NRLA argues that more substantial measures are needed to encourage landlords to remain in the PRS.

Government figures reveal that a third of landlords (31%) intend to sell their rental properties within the next two years, up from 22% previously.

However, only 7% plan to provide new rental homes, down from 11% in 2021.

With an average of 21 people competing for each available rental property, the NRLA is urging the government to reform rental housing taxation to incentivize the supply of high-quality homes.

Reform the way rented housing is taxed

The NRLA is now urging the Government to reform the way rented housing is taxed to encourage the supply of new, decent quality rental homes.

Also, it says that responsible landlords need confidence that when Section 21 ‘no-fault’ repossessions end, legitimate possession cases will be processed quicker by the courts than at present.

The NRLA also wants the Government to publish a clear plan to improve the court system.