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

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.”