9:33 AM, 7th February 2025, About a month ago 12
Text Size
Let’s be honest, the Conservatives did landlords in the UK no favours, but Labour are delivering something that is making me sit up and think.
It appears that both political parties are dedicated to reducing the private rented sector, but I don’t think that anyone has thought about the consequences.
I tuned into the Lords’ debate on the Renters’ Rights Bill this week, and apart from the unnecessary crackdown on decent landlords, I was left asking: “Where will the displaced tenants go when landlords sell?”
This critical issue seems to be overlooked, leaving me wondering about the future of housing in the UK.
It doesn’t help that landlord surveys are now pointing to a trend of selling – and if they haven’t started doing so, lots of landlords will undoubtedly begin evicting this year.
For many landlords, the current climate feels like a full-scale attack as the PRS landscape changes dramatically.
We face a complex web of regulations, compliance requirements, sanctions, penalties and licensing schemes.
Section 24, with its well-documented impact on landlord finances, is just one example.
Many experienced landlords, who entered the market decades ago, will feel bewildered by the current situation.
I know I do.
You only have to read Jeremy Corbyn’s nonsense this week about bringing in rent controls to deal with landlords’ ‘excessive’ profits!
There are no excessive profits, Jeremy, politicians and councils have put paid to that.
But I’m wondering which world does he live on? It’s like there’s no need to make a profit because that makes rent expensive for tenants.
There’s no acknowledgement of why – or indeed of any knowledge about what it takes to be a landlord.
The surveys highlight that while some landlords remain committed to the sector, many are seriously considering reducing their portfolios.
I imagine that the surveys later this year will show that many have thrown in the towel.
Concerns about the Renters’ Rights Bill, particularly the proposals regarding pets, periodic tenancies and the absurd idea that tenants can hand in their notice on day one are pushing landlords to reconsider their positions.
I know of landlords who are wondering what made the PRS so toxic that long-term landlords feel compelled to sell rather than be targeted continually as bad, exploitative people.
And yet the fundamental need for housing remains.
Many tenants aspire to homeownership, but they need somewhere to live while they build their careers and save for a deposit.
What happens when marriages break down, forcing individuals to leave the family home? Where will people go?
Driving out private landlords will only exacerbate this trend, leaving individuals with limited and undesirable housing options – including the dreaded ‘temporary’ accommodation.
I appreciate that local councils are facing immense pressure to provide housing.
That’s not the fault of private landlords. It isn’t.
And councils targeting landlords with fines and penalties – while their own properties would shame a private landlord – also puts investors off.
Councils need the private rented sector, yet policies seem designed to undermine it – there’s a clear disconnect between policy and reality.
Many decision-makers appear to lack a fundamental understanding of how the property market, and indeed many other sectors, operate.
The call for rent controls is a prime example of this lack of understanding.
While well-intentioned, rent controls usually lead to a drop in the quality and availability of rental properties.
Just this week, Scotland has announced the end of rent controls – after being told they don’t work and the Scottish Association of Landlords saying 50,000 private rentals have left the sector.
Let’s give the SNP a round of applause!
The housing bill still has the option for councils to bring in rent caps, which means they will do so and wonder why there are no homes to rent.
For landlords who remain, demand will rocket as renters have less choice – and higher rents mean a better return for the landlord.
But this is still a risky strategy.
It means relying on market forces to counteract the negative impact of legislation – laws that will make being a landlord much more difficult and expensive.
Plus, there’s the worry about energy performance certificate regulations.
The push to upgrade properties to a C rating is seen by many as unrealistic and financially crippling.
The cost of these upgrades, which can run into thousands of pounds per property, is prohibitive for many landlords.
It’s a deal breaker for those who want to comply with the Renters’ Rights Bill but can’t face forking out £10,000 to deliver a few quid a week energy saving for tenants.
My big fear is that landlords already get a bad press and as a country we are potentially looking at the consequence of mass evictions.
With landlords choosing to exit the market rather than invest in costly renovations, the resulting impact on tenants, particularly families, could be devastating.
The sheer scale of the problem, especially in areas with a high concentration of older properties, raises serious questions about the government’s approach.
The Conservatives failed us and appeared to favour corporate landlords, while Labour’s policies look like being driven by ideological motives rather than practical solutions.
The result is a growing sense of betrayal among smaller landlords, many of whom entered the market to supplement their pensions.
Many of us feel that our hard work and investment is being undermined by short-sighted policies.
This is going to be an interesting year with long-term consequences for tenants, the availability of affordable housing and a worsening housing crisis.
It’s galling to think that ordinary people, many of whom will have voted Labour and admired the rash promise of ‘levelling’ the PRS playing field, will be left to bear the brunt of the fallout.
It really doesn’t have to be this way.
Until next time,
The Landlord Crusader
Ian Narbeth
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up10:34 AM, 7th February 2025, About a month ago
The PRS playing field is not level. It has been heavily tilted towards tenants. And still Labour doubles down on failed and failing policies. Matthew Pennycook talks about closing "loopholes" for landlords. There are no loopholes for landlords. I challenge him to name one. I will make a substantial donation to charity if he can.
On the other hand, there are plenty of nasty legal traps for landlords, plenty of wholly disproportionate penalties for trivial errors, plenty of delays in getting justice when a tenant defaults and plenty of grief for landlords dealing with tenants from hell. Much of this has been created by the Tories, egged on no doubt by lefty lawyers in Government whose motto seems to be "If it ain't hurting (landlords), it ain't working."
You are right that it doesn't have to be this way but Labour are determined and tenants will suffer in consequence.
Julian Lloyd
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up11:17 AM, 7th February 2025, About a month ago
Reply to the comment left by Ian Narbeth at 07/02/2025 - 10:34
Its going to be a painful three or so years starting just after teh summer. I realy feel for tenants, mine are all lovely and if I wasnt 'protecting' them from the actual cost realities of the rental system in our area they would all be fkd.
Peter Merrick
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up11:52 AM, 7th February 2025, About a month ago
"It appears that both political parties are dedicated to reducing the private rented sector, but I don’t think that anyone has thought about the consequences".
I think they have all made it quite clear that they see the PRS as a blot on the social landscape, ever since uncle George decided to put the skids on it.
The eradication of the PRS is most certainly the ultimate agenda, especially for Labour.
At least Labour have realised that you need to give people somewhere else to live, even if they are incapable of sustaining former levels of housebuilding, let alone upping it to 300K a year!
Goodness knows what we will do with all the former rental properties once they have rehoused the tenants in the wonderful world of social housing or BTR. Airbnb anybody?
Ross Tulloch
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up14:11 PM, 7th February 2025, About a month ago
It really is sad. The overriding issue is a shortage of rooms and a shortage of properties. And yet this is the one thing that is not being dealt with an indeed many of the things that are coming in will make it specifically worse. Everything should be directed to encourage more properties to be let out.
Gary Lloyd
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up15:49 PM, 7th February 2025, About a month ago
Great article which says it all in a nutshell. It's obvious there is a hidden agenda as I can't believe that any competent Government with joined up thinking would relentlessly attack the very sector that can help them out of the housing crisis. It would be very interesting to know what that agenda really is, other than the predictability of Socialists resenting anyone who owns anything, and has any kind of aspiration. It has been said that maybe their vision is moving towards transforming the PRS into a form of social housing? It's interesting that for decades now left wing politics has been the main driver in attempting to banishing any form of discrimination in society, yet private landlords are experiencing just that through wholly unfair Government policies and frankly bullying.
Peter Merrick
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up18:39 PM, 7th February 2025, About a month ago
Reply to the comment left by Ross Tulloch at 07/02/2025 - 14:11
See my comment above ... ultimately they want landlords to cease and desist. The only option for those landlords who stay in the sector is to prioritise their business. They will have to leave the govt to deal with the consequences until they (perhaps) relent and realise that landlords were never part of the problem, just another option to fulfil a demand.
Blodwyn
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up20:49 PM, 7th February 2025, About a month ago
It is sad, as mentioned above. My wife and I have a single rented property. Only one problem tenant who went nice as pie! They were hiding a rabbit the size of an Alsation in the loft! And they didn't know what a hoover or a pan and brush were for. Don't ask about that sparkling cooker?
The point is, when one of us dies, we want to stay independent. One person would rattle, our big house will be impossible. As an 80 yr old, I would wish to rent for the years not buy with stupid taxes. Bugger care homes!
What do I do when litle G/F falts have gone?
Gary Lloyd
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up21:19 PM, 7th February 2025, About a month ago
P.M we can only hope for a u-turn but I wouldn’t hold your breath. After all you must remember we are all unscrupulous, greedy individuals who rent out mouldy accommodation not fit for human habitation.
Peter Merrick
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up22:17 PM, 7th February 2025, About a month ago
Reply to the comment left by Gary Lloyd at 07/02/2025 - 21:19Yes, we will have to become that to survive. I was a full-time teacher for many years until I became disabled with a serious medical condition, so it's in my DNA to care about other people, especially those that are vulnerable. As a landlord I have done everything possible to look after my tenants, even helping them with things like applying for benefits and getting bank accounts. One EU migrant even needed help to get settled status and UC application through after he lost his job. All whilst generally charging a bit less than the market rate.
I bet you would not get any of that from social or BTR! And I have always paid my way and taxes and never claimed any benefits despite my disability, as I would have had to do if the govt had its way and abolished all those so evil landlords.
But going forward, my first concern has to be to protect my assets. This means charging as close to the going rate as I can, vetting tenants to the hilt, and managing my lettings in the most profit-effective way to counter all the fiscal attacks the govt can throw at me. If I succeed, then at least my tenants will have a secure place they can call home. So ironic that all the attacks by govt are creating so much more insecurity, not less.
Gary Lloyd
Become a Member
If you login or become a member you can view this members profile, comments and posts!
Sign Up22:39 PM, 7th February 2025, About a month ago
Your situation represents everything that I have been so angry about for so long now, namely since the 2015 budget, and I really don't want to feel that way on a daily basis. First and foremost you are a very decent man, and secondly you happen to be a landlord. I rent a single property which was formerly my sole residence, and with the advent of section 24, I now contribute well over 2k per year to the rental profit to meet the tax bill, yet homeless charities, consecutive governments and the media portrait me as a bad person. I am actually subsidising my tenants to stay in the property and they don’t even know it. Don’t ask me why I’m hanging on to the property, maybe it’s a matter of principle.