Peer denies there is a landlord exodus from the PRS

A leading independent peer says that fears of a landlord exodus are ‘unfounded’ and he is calling for the landlord-tenant scales of power to be rebalanced ‘urgently’.

Lord John Bird, the founder of Big Issue and a crossbench peer, was speaking out after Rightmove data highlights more rented homes are coming to the market.

He questions whether landlords really are selling up and says fears of a sell-off to avoid the Renters’ Rights Bill impact are unfounded.

Mr Bird’s views have been echoed by the Renters’ Reform Coalition which says a landlord exodus has ‘failed to materialise’.

‘Unfounded fears’ of an exodus

Mr Bird says: “The rental market remains strong, regardless of the impending arrival of the Renters’ Rights Bill.

“Landlords who are already providing quality accommodation for their tenants have rightly recognised that these reforms leave them little to worry about, and the lucrative income that can be gained from the current rental market remains a clearly attractive proposition.

“The Renters’ Rights Bill must not be watered down at this final stage of scrutiny in the Lords due to unfounded fears of a mass landlord exodus from the market.”

He added: “We must rebalance the landlord-tenant scales of power urgently.

“There can be no more delay to this overdue political promise – that’s why I have tabled an amendment calling for an end to section 21 no-fault evictions on the very same day the Renters’ Rights Bill is passed into law.”

Exodus has not materialised

Tom Darling, a director at the Renters’ Reform Coalition, told the Big Issue: “Time and again landlord groups have threatened a mass selloff in response to renters receiving basic rights and protections.

“Yet now, with the passage of the Renters’ Rights Bill right around the corner, market data shows the ‘landlord exodus’ has not only failed to materialise, but supply is actually increasing.”

He goes on to say that rising rents are ‘pushing’ renters in England from their homes and the government must ‘get a grip’ on soaring rents.

Mr Darling also calls for a cap on in-tenancy rent rises to stop ‘economic evictions’ and keep tenants in their homes.

Implications for landlords

Rightmove’s data shows that the number of new properties coming into the market in March was 11% ahead of the same period last year.

Plus, the overall number of rental homes now available is 18% ahead of March 2024.

That has led to a quarter of rental properties lowering rents – the highest rate since 2018.

The firm’s lettings expert, Christian Balshen, said: “I don’t expect the Renters’ Rights Bill to have much of an impact on market activity, but there are a lot of wider implications for tenants and landlords.

“The banning of rent in advance, for example, may make it more difficult for some types of tenants to secure a home, particularly in high-demand areas.

“Supply and demand in the rental market is really varied at the moment across Great Britain.

“The number one thing landlords will still want, is a good, reliable, long-term tenant, and there’s likely to be even more emphasis on this once the Bill comes into effect.”

Landlord sell off is underway

Despite the claim from Mr Bird, there is lots of data from the last few weeks to illustrate that a landlord sell off is underway.

Goodlord says the most concerning risk to tenants from the Bill is the triggering of a landlord ‘exodus’ as investors flee the PRS.

Knight Frank says prime London landlords are selling to avoid the Bill’s impact, and Propertymark‘s latest report highlights the trend.

Together‘s research shows landlords are quitting and TwentyEA says there is a mounting crisis.

And Aldermore says a third of landlords are currently selling properties.