We need more landlords for immigration and students – Bank chief

The UK’s increasing population and immigration levels are piling pressure on the private rented sector, the boss of Paragon Bank says.

And rather than seeing landlords leave the PRS for various reasons, the government should be encouraging landlords to invest.

Nigel Terrington, the company’s chief executive, told The Times that the shortage of landlords is exacerbating the housing crisis, with demand for rental properties driving up costs.

He warns that the situation will worsen since the UK’s population is set to grow by 4 million people by 2032.

We need more landlords

He said: “Immigrants tend to come into the UK and will rent, rather than buy.

“So, it puts more pressure on the rental market and therefore we need greater levels of landlord formation, rather than keeping it stable.”

He says that high tenant demand is pushing up rents and more landlords are needed – especially in student towns.

In another interview. Mr Terrington said: “Demand for rented property is very high – everywhere you go you hear there are 15, 20 people for every rented property that is available and, of course, that’s pushing up rents.”

More time for RRB

Mr Terrington also pointed to a wider shift from ‘amateur’ landlords to professional landlords, who tend to own more than five properties.

This is helping boost Paragon’s buy to let lending which has grown by 25%.

The bank’s boss is also calling on the government to give landlords the time needed to implement the Renters’ Rights Bill.

The legislation will see Section 21 ‘no-fault’ evictions being abolished and an end to tenant bidding wars.

Mr Terrington told the newspaper it would be ‘crucial’ for an ‘implementation period’ and for the law to be communicated to both landlords and tenants.

He also said that landlords need ‘certainty and clarity’ following events such as a new government and interest rates being increased.