Half Of Landlords Say They Will Leave The PRS
Nearly half of landlords say they will reduce – or sell off all - their property investments in the private rental sector because of the potential removal of Section 21, research reveals.
The findings from the Residential Landlords' Association (RLA) questioned nearly 6,500 landlords to deliver their biggest ever response.
They found that 46% of letting agents and landlords say they will quit the buy to let sector because of the government's plans for ending Section 21 - that's 'no fault' eviction process.
The findings also highlight that 40% of landlords are waiting for further planned changes to become clearer before making a decision on leaving the sector.
In addition to announcing plans for ending Section 21 repossessions, the government is also proposing to improve the Section 8 process which enables a landlord to repossess their property on various grounds, including antisocial behaviour or rent arrears.
Buy their property with a tenant in-situ
The survey also questioned landlords over fears that many tenants may be evicted if they sold up and the RLA found that 48% of landlords said they would encourage someone to buy their property with a tenant in-situ.
The RLA's policy director, David Smith, said: "With demand for private rental housing showing no sign of slowing down, it's vital that a landlord is confident they can quickly and easily get back their property in legitimate circumstances.
"While the system should be fair to tenants, it also needs to encourage and support good landlords."
London rents driven up by supply
Meanwhile, tenants in London will see their rents increasing because there's a lack of supply of quality homes.
The warning comes from letting agents Chestertons who say that tenants in London are facing higher rents with landlords in south-west London seeing their rents significantly outpacing other areas in the capital.
This is despite the imminent ban on tenant fees.
The firm's head of lettings, Richard Davies, said: "Tenants may welcome the fees ban as it will save on costs but it's a distraction from bigger issues.
"It's been a turbulent time for tenants and landlords who are feeling the impact from government reforms to stamp duty for second homes and mortgage tax relief, so the market is difficult to manoeuvre and it has shrunk as a result."
However, the firm says there are still opportunities available for landlords, especially in high demand rental hotspots including Putney, Clapham and Wandsworth.