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Landlords selling properties ‘single biggest challenge renters face’

Landlords selling properties ‘single biggest challenge renters face’
Anna Sagar
Written By:
Anna Sagar
Posted:
15/05/2024
Updated:
15/05/2024

Landlords selling their properties is the “single biggest challenge” for renters, as it reduces supply and increases instability in the sector, a trade body has said.

According to the National Residential Landlords Association (NRLA), which undertook 774 online interviews with landlords, 83% reported that demand for rental properties by tenants is strong.

It continued on to say that 31% of landlords surveyed say they planned to reduce the number of properties they rent out. This compares with just 9% who plan to increase the number of properties to let.

The trade body added that Government data backed up the fact that landlords selling was the “single biggest threat” to renters.

It said that, among households eligible for support from their council to prevent homelessness following the end of a private rented tenancy agreement, 45% needed help because their landlord planned to sell the property in the second half of 2023.

The NRLA said that this was more than twice as much as the next most common reason for the end of rental tenancies, which was landlords planning to re-let the property.

The findings come as the Renters Reform Bill is due to be debated in the House of Lords today.

The bill passed its third reading in the House of Commons at the end of April, with MPs voting to include a clause that Section 21 eviction notices would not be abolished until the Lord Chancellor published a report on the readiness of the court system for such a change.

‘Widespread calls for policies to boost supply’

The change in Section 21 eviction notices, along with other amendments, has led many to criticise the bill, arguing that it is “watered down”.

Ben Beadle, chief executive of the NRLA, said: “Landlords selling up is the single biggest challenge renters face. The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.

“As peers debate the Renters Reform Bill, it is vital that it works for landlords as well as tenants. As it stands, it would achieve this balance. We are calling on peers to support the bill to give the sector certainty about the future.

“More broadly, all parties need to accept widespread calls for policies to boost supply in the private rented sector.”