A prominent industry analyst has hit out at the Renters Rights Bill, saying it is an attack on the “entire UK property market.”
Doug Shephard is the director of Home.co.uk, which issues a respected monthly sales and lettings market monitor. In an editorial accompanying the data in the latest edition he warns that the Renters Rights Bill could be the measure that kills off the private rental sector.
He details the measures in the Bill, describing the proposed ban on Section 21 evictions as “particularly contentious” because even though most landlords have never used the power, many view it as a crucial safety net.
He goes on to say: “Another big issue for landlords is the notion that the legislation states they can’t act on rent arrears before three months are up. During this period a landlord could easily slide into financial difficulty. They then find that they can’t evict the tenant for non-payment before they themselves become bankrupt.
“The Renters’ Rights Bill will not improve the lives of tenants; more likely, it will worsen their plight. It is in fact an attack on landlords’ fundamental property rights and therefore an attack on the entire UK property market.”
The latest Home market snapshot says that landlords downsizing their portfolios, particularly in London, have contributed to a record number of sales listings. However, this is leaving renters facing a chronic lack of supply.
While the number of properties available to let has increased by 25% since October last year, the total remains 21% lower than in October 2019.
The snapshot warns that landlords clearly need more incentives (and assurances) to stay in the market and increase the supply of essential quality housing, and says that until this is achieved, renters will continue to suffer high rents and lack of choice.
Overall, UK asking rent growth has slowed to zero, although this annualised national growth figure obscures the vast regional disparities between Greater London at -3.6% and the two best performers, Wales (+15.1%) and the North East (+12.0%).
The London borough of Haringey shows the greatest decline in asking rents with an annualised rental fall of -14.0%.
The Home snapshot states: “Given that London rents increased by 32% over the last five years, we are now observing a market pricing correction that may persist well into next year.”
You can see the latest market report here.