Pennycook: ‘We don’t want an exodus of landlords’

Pennycook: ‘We don’t want an exodus of landlords’

14:44 PM, 23rd October 2024, About a month ago 71

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The Housing Minister Matthew Pennycook says he doesn’t want landlords to leave the private rented sector (PRS) – and he’s seen no evidence that it is happening.

Speaking to MPs at the Committee stage of the Renters’ Rights Bill, Mr Pennycook was asked what his biggest takeaway from the day’s hearing was.

He replied: “We don’t want an exodus of landlords from the sector, but I’ve seen absolutely no evidence of that.

“I think this is a threat that has been bandied about for many, many years now.”

‘There has been an outflux of smaller landlords’

He went on to say that the size of the PRS had ‘doubled since the early 2000’s’.

Mr Pennycook said: “I would say there has been an outflux of smaller landlords, particularly over-geared buy to let landlords.

“That is mainly a result of section 24 tax changes that George Osbourne introduced in 2015 explicitly to slow the growth of the private rented sector so there has been an exit from the sector of certain types of landlords.

“But we are certainly not seeing an exodus.”

‘Good landlords have absolutely nothing to fear’

The Minister went to discuss the feedback from landlords he’d received in recent months.

He said: “The most damaging thing for many was the uncertainty about whether reform is coming through.

“In general, good landlords have absolutely nothing to fear from this system, we think it provides a framework in which they can continue to invest and operate.”

Mr Pennycook said the balance has been struck in the Bill between landlords and tenants and said the aim was not make things ‘much more difficult for tenants’.

He said: “That is why the government is not advocating for rent controls.

“I think the Scottish experience is constructive in terms of what can happen in terms of unintended consequences.”


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Northernpleb

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9:32 AM, 24th October 2024, About a month ago

If Pennycock, is correct.

Why am I getting between 60 and 100 enquiries when a Rental Property come up.

Mick is also correct you cannot afford to have less than prefect Tenants .

Ian Narbeth

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10:14 AM, 24th October 2024, About a month ago

Reply to the comment left by Peter Merrick at 23/10/2024 - 17:18
Peter, see my earlier post: https://www.property118.com/pennycook-we-dont-want-an-exodus-of-landlords/#comment-184095

It may be true that the size of the PRS has doubled since the early 2000s. So what? The demand has more than doubled. We need to fight on the right territory and calling someone dishonest when the figure they give may be true harms your case.

NewYorkie

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11:14 AM, 24th October 2024, About a month ago

Reply to the comment left by Landlord of 25 years at 24/10/2024 - 07:58
3 of 4 sold, with the final one to be sold ASAP. None have gone to investors, so no rental continuity.

Readily available stats to show the number of rental properties has fallen by 30% since 2019.

None so blind as those who will not see!

NewYorkie

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11:20 AM, 24th October 2024, About a month ago

Reply to the comment left by Ian Narbeth at 24/10/2024 - 10:14
Yes, BTL went crazy up to 2016, then Osborne started attacking the PRS, many investor landlords left, and Airbnb grew exponentially.

No wonder he didn't use current statistics!

Peter Merrick

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12:03 PM, 24th October 2024, About a month ago

Reply to the comment left by Ian Narbeth at 24/10/2024 - 10:14It is dishonest because, as you say, it ignores the fact that demand has gone up, and as a lot of people are saying, the actual number of properties are going down, so it is like a pressure cooker at the moment.
It's a case of lies, damned lies and (the blatant misuse of) statistics.
I'm a mathematician by trade btw.
However, it does mean that things like voids, which were common at times of greater supply/demand balance, are much less of a risk, and it's potentially much easier to get good tenants.
Personally, I've always done most of the things that the govt are proposing, like indefinite contracts, since it saves having to sign a new agreement every 6 months or a year, unless I need to change the rent substantially.
But that will likely change in the future. Matching market rates and annual rent rises will become normalised as nobody wants to be caught out by being unable to reset the rent to market value after several years of not increasing the rent.

David100

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14:33 PM, 24th October 2024, About a month ago

Is the housing minister so dim, that he cannot work out that the PRS needs to grow in the light of an increasing population?
So no mass exodus? There doesn't need to be!
Killing off any increases in the PRS is enough.

I will never rent again, but I will let the tenats I have stay until they want to leave.

So I wont show up on that "non exodus" statistic.

But no more vacancies in the Inn.

Desert Rat

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0:39 AM, 25th October 2024, About a month ago

Just wondering if I am the only person that wants to scream the every time I hear the phrase

‘Good landlords have absolutely nothing to fear’

Good landlords are the only people that have any concerns about the RRB. The rouge landlords will just continue to ignore it,

I'm sure that the government know who they are but choose to ignore it. Otherwise they may need to house the people the rouge landlords currently house.

Peter Merrick

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1:40 AM, 25th October 2024, About a month ago

Good landlords have nothing to fear! It's the truth guv, honest, seriously, you gotta believe me!

The man doth protest too much, methinks!

Desert Rat

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5:58 AM, 25th October 2024, About a month ago

Just wondering if I am the only person that wants to scream the every time I hear the phrase

‘Good landlords have absolutely nothing to fear’

Good landlords are the only people that have any concerns about the RRB. The rouge landlords will just continue to ignore the legislation

Ian Narbeth

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10:08 AM, 25th October 2024, About a month ago

Reply to the comment left by Desert Rat at 25/10/2024 - 05:58
I am a bleu landlord, not a rouge one.

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