My landlord vision for Christmas 2025 – it’s not good for tenants

It’s been six months since the Renters’ Rights Bill hit the statute books and the dust still hasn’t settled.

Tenants are outraged at the government’s meddling and can’t believe that evictions haven’t ended.

That’s despite reassurances from the naïve crowd in Labour that Section 21 ‘no-fault’ evictions are the ‘leading cause of homelessness’.

But we’ve since found out that wasn’t the case.

Rent arrears, anti-social behaviour and fed-up landlords bailing out of the PRS are the reasons why renters were being evicted.

Who knew?

Promise of tenant empowerment

There’s little festive cheer for the UK’s landlords after the promise of tenant empowerment has morphed into a harsh autumn of a growing PRS disaster, and frankly, it’s not a pretty sight.

My crystal ball has been working overtime to paint this bleak picture:

• The housing crisis deepens: The promised 1.5 million new homes? Still a pipe dream. Meanwhile, the landlord exodus we predicted has become a reality, drastically shrinking the supply of rental properties. Tenants, now clinging to their rented homes like life rafts, are staying put for longer, not out of choice, but necessity. The inevitable result? Rents have rocketed as landlords opt to price high to avert any legal challenge of creating a bidding war. This move disproportionately impacts those on benefits or low wages – the very people Labour claims to champion
• Periodic tenancies: The introduction of periodic tenancies has wreaked havoc on the student accommodation sector, as predicted. Student landlords take fright at the prospect of students handing their notice in after Christmas to live with parents and save cash. Overseas students face a near-impossible hurdle since they can’t pass stricter tenant checks without a UK presence, and with landlords understandably wary of accepting illegal advance rent payments, they’re left stranded. Potentially, universities could help but they don’t have the accommodation levels (thanks to years of over expansion…)
• Notice periods: The much-lauded ability for tenants to give two months’ notice from day one, while landlords remain bound by longer notice periods, has created a power imbalance. Despite the Bill having the aim of levelling up the playing field, landlords now face extended void periods and the recurring costs of finding new tenants. Grounds for possession under Section 8, requiring a year’s occupancy, further tie landlords’ hands. To me, this is no longer an investment strategy; it’s indentured servitude
• Selective licensing goes wild: Councils, emboldened by the Labour decision to remove the Secretary of State’s permission before creating a scheme have unleashed a torrent of selective licensing scams, I mean schemes, adding another layer of red tape and cost for landlords – though it’s tenants picking up the bill
• Arrears and the Courts: The extended period before rent arrears become actionable, coupled with the chronically overburdened court system, has created a perfect (predictable) storm. Tenants can effectively enjoy a rent-free period for months, potentially years, while landlords are left powerless. Lefty judges and solicitors don’t help the situation
• Guarantors: The restrictions on accepting guarantors adds another layer of risk, particularly for younger tenants. It appears that only landlords should be put at a potential financial disadvantage
• EPCs: Labour continues doubling down on the EPC C rating by 2030 despite the whole Net Zero nonsense harming the economy and putting us at a disadvantage with leading economies. There’s still no sign that this much needed measure to deliver ‘warm and comfortable’ homes will extend to the social housing sector. It’s just another nail in the coffin for landlords, driving even more out of the market.

Evidence of a landlord exodus

Housing minister Matthew Pennycook and his cronies still deny there’s evidence of a landlord exodus, but more are leaving than investing. They bury their heads in the sand and deny the damage, but the reality is clear.

The Renters’ Rights Bill, far from being a panacea, has exacerbated the very problems it purported to solve. Even the government’s late pitch to impose rent caps doesn’t play well – everyone can now see why rents are rising. It isn’t landlord greed.

For landlords, Christmas 2025 is a stark reminder of well-intentioned, but ultimately misguided, legislation.

It’s a time for reflection, and perhaps, a strategic rethink.

The PRS landscape has undoubtedly changed with both tenants and landlords losing out.

The scenario was inevitable but it’s way worse than landlords could have foreseen and there’s no sign of a U-turn since the Labour clown show government is too busy fighting the fires it started: there’s no economic growth, immigration spirals out of control, overtaxed businesses are still laying off, incomes and living standards plummet – basically, it’s January 2025 on steroids.

We’re back to the problem of unintended consequences – that is if you ignore the expertise of landlords who have been vilified and who are too beaten to say, ‘We told you this would happen’.

Until next time,

The Landlord Crusader

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