Renters Rights Bill Impact: Landlords Consider Selling Properties

England’s rental market could be disrupted as a new study shows that one in five landlords are contemplating selling their properties this year. The reason is the impending Renters Rights Bill. While good news for renters, the bill has left many landlords feeling overlooked and uneasy about their prospects in the Buy-to-Let (BTL) sector.

Although the study found that most landlords plan to stay put, a sizeable chunk is looking for an exit. If they follow through, it could aggravate an already tight rental market, where demand far outstrips supply.

Renters Rights Bill: Why Are Landlords Worried?

The Renters Rights Bill promises to make renting fairer for tenants by introducing sweeping changes. For starters, it removes Section 21 ‘no-fault’ evictions, which let landlords kick tenants out without reason. It also stops landlords from turning away renters just because they are on benefits or have kids. And it plans to phase out short-term tenancies to give renters more stability.

But landlords feel they have been ignored. And this could invite serious trouble. Because if landlords start selling their property and exiting the rental market, it could reduce the number of available homes and make the rental crisis worse. As mentioned earlier, demand for rental properties is already higher than supply in the UK. Imagine if that supply shrinks further!

Landlords Exploring Options

The study shows a mixed picture for the rental market. About 21% of landlords say they plan to sell off some of their properties this year thanks to the Renters Rights Bill. But it is not all doom and gloom.

The majority of landlords (75%) say they plan to stay in the private rental sector, and a small percentage (4%) are even considering expanding their portfolios.

This suggests that although some landlords are feeling the pressure, many still see BTL as a promising investment.

What Does All This Mean for Tenants?

A slump in the number of rental properties could spell trouble for tenants. With demand for rentals already through the roof, fewer available homes could kick prices even higher, making it painful for people to find a place they can afford.

That means the government must find a middle ground: protect renters while supporting landlords. Because, the conundrum is, if you fail to protect landlords, they will leave and make renting harder and more unaffordable for tenants.

Conclusion

The rental market is at a turning point as the Renters Rights Bill edges closer to becoming law. And the conversation about its effects is heating up. The choices made in the next few months will have a lasting impact.

Although stronger protections for tenants are welcome, the government cannot afford to overlook the struggles landlords face. Some might decide to sell up, and others will adjust to the new reality.