Landlords selling up is fuelling the UK’s housing crisis

Landlords selling up is fuelling the UK’s housing crisis

0:03 AM, 29th January 2025, About 2 weeks ago 11

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A Parliamentary report has underlined the critical connection between inadequate Local Housing Allowance (LHA) rates and the mounting risk of evictions.

The House of Commons Public Accounts Committee used crucial data from Reapit, a leading property technology provider.

Reapit’s analysis found that nearly 70% of property professionals had issued Section 21 eviction notices due to rent arrears.

It says this figure highlights the financial strain facing tenants reliant on LHA with insufficient payments creating an affordability gap.

This then leads to rent arrears, evictions and, in the worst cases, homelessness.

The realities in the PRS

The firm’s commercial director, Neil Cobbold, said: “We welcome the Public Accounts Committee’s report, and the evidence we’ve provided shows just how critical it is for the industry to engage with policymakers on this and other pressing issues.

“Having access to the relevant data can shine a light on the realities in the PRS that should drive change, such as the fact that arrears are far more likely to be the reason for a Section 21 eviction, and not ulterior motives, as some suspect.

“It’s crucial that the industry continues to work with government to drive meaningful change.”

He added: “Without significant court reforms to reduce delays in eviction cases, we feel the current Renters’ Rights Bill will make the affordability situation for tenants worse, as landlords appear to be selling in reaction to the legislation, leaving tenants with less choice and higher rents.”

More landlords are selling

Compounding the housing crisis is a dwindling supply of rental properties with Reapit’s survey finding more landlords are selling than purchasing new ones.

Just 11.9% of properties sold by landlords were acquired by other landlords, while 54.5% of landlords are exiting the market.

This shrinking supply will inevitably drive rents higher – increasing the affordability challenges for tenants.

Mr Cobbold said: “What we really need is a joined-up strategy across government departments to stabilise the PRS.

“This includes credible court reforms to restore landlord confidence, measures to bring vacant properties back into use, and ensuring housing benefit calculations reflect real-time rent prices.”

He adds: “Without these changes, tenants across the UK will continue to struggle with rising rents due to housing shortages, and landlords will shoulder increased risk from being unable to recover properties when necessary.”


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Cider Drinker

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10:39 AM, 29th January 2025, About 2 weeks ago

If disabled people are more likely to need to rent and may need more expensive properties, due to their needs, then surely, LHA is discriminatory as it only covers the cheapest rental properties.
Even then, it only covers the rent for the 30% cheapest properties with rates fixed long before the payments are due. For example, in March next year, LHA will be paid based on data collected in September 2024. The rates will be out of date by 2 years and six months.

Retired GasMan

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11:14 AM, 29th January 2025, About 2 weeks ago

I'm not entirely sure what the relevance of this article is, this has been the case for quite some time so it's not really news.

The shame in all this is that the government think they are doing good

Stephen Hare

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11:24 AM, 29th January 2025, About 2 weeks ago

Like most Landlords, I have very little experience of either Section 21 or Section 8 but tenant arrears is definitely a growing problem. The affect of the upcoming Rent Reform Bill will be to increase the amount of debt that tenants can run up before any action can be taken. The only beneficiaries of this change are the tenants who are spending their Universal Credit Housing Allowance on things other than payment their rent. There is no sanction for this misuse of funds so, after running up further debt while the eviction process takes place, they move on to the next landlord and repeat the process.
The effect of this is to discourage private landlords from taking tenants on benefits, and it is also proving to be the final straw for many landlords who opt to sell up rather than re-let their properties. The increasing regulatory requirements of letting property should not be forgotten as one of the primary causes of landlords selling up.

David Roberts

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14:01 PM, 29th January 2025, About A week ago

I'm also one of the landlords selling up. When I gave my tennants notice 2 years, it was from that moment things went sour. They accused me of unable to get an adoption because of the house? (Even though I gave them a good character reference)After several months misleading and lies, it was at this point I decided to issue a section 21 notice because I just had enough with it all ( and I've known them for more than 20 years) I know have my house back and it's already been sold in less than two weeks.
I can carry on with details but I will be here all afternoon but i don't have the time.
I am NEVER EVER going to be a landlord again. It's just not worth the hassle, especially if you work full time.
Take care

Tim Tanner

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15:36 PM, 29th January 2025, About A week ago

I was renting a flat in Mansfield to a tenant on benefits. Fortunately, she has moved on so I have taken the opportunity to sell up. That's nearly half of my portfolio gone now.

Still, right honourable member Mr. Pennycook says there is no evidence that landlords are selling up so this report must be wrong. What a fool I have been paying all that CGT to HMRC.

David Houghton

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16:50 PM, 30th January 2025, About A week ago

Reply to the comment left by David Roberts at 29/01/2025 - 14:01
I know the feeling, I'd someone have me a pound for every time a tenant or their associate has pulled a knife on me or washed their fists in front of my face we could have a good night out. Add in I will sue and we can't bri g the wives for a slap up meal. My Grandfather did this job, my uncle too. Before I was born. So glad my kids don't want to take over. Except for my most vulnerable tenants everyone can go

Julz H

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17:10 PM, 30th January 2025, About A week ago

Reply to the comment left by Cider Drinker at 29/01/2025 - 10:39
Tbh there's a massive short fall on the cheapest rents of between £70 and £150 a month in my area. The housing allowance no longer covers many of the council properties rent. People are poorer today than 20 years ago cos of the rent top up and the council tax they never used to pay if on legacy benefits or working tax credit.

Julz H

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17:32 PM, 30th January 2025, About A week ago

Reply to the comment left by Stephen Hare at 29/01/2025 - 11:24
It's worth remembering and considering disabled people who are on universal credit as people who are disabled are highly likely able to have rental payments paid direct to you from the beginning of the tenancy.

raj beri

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8:13 AM, 1st February 2025, About A week ago

Reply to the comment left by Tim Tanner at 29/01/2025 - 15:36
It's not easy to establish if LLs are selling up in their droves or not

Different reports say different things

David100

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9:34 AM, 1st February 2025, About A week ago

Reply to the comment left by raj beri at 01/02/2025 - 08:13I think there are loads of landlords like myself, who have had enough, but will wait until existing tenants leave (for their benefit because they have been good tenants, touch wood).
I wont appear on any "exodus" statistic, but I wont ever have another tenant.
So the result is ultimately the same, a shrinking PRS.

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