Industry News
Tenants bear brunt of housing crisis as budget undermines choice, says landlord body
T
enants will continue to struggle to find the housing they need, as new data reveals the chronic shortage of homes to rent to
meet demand. Almost eight in ten landlords (79%) report that
the demand for private rented housing was strong in the third quarter of the year, according to research from Pegasus Insight. Te data, compiled for the National Residential
Landlords Association, indicates that landlords who let property in the South East experience the highest levels of demand, with 84% saying it was strong in Q3 2024. By contrast, the figures reveal that demand for private rented accommodation is lowest in the West Midlands. Despite this trend, across England and Wales 19% of landlords said they sold property
over the previous 12 months – more than double the 8% who purchased properties over the same period. Looking forward over the next 12 months 41% of landlords said they plan to sell at least some rental properties, compared to just 6% saying they would buy. Te NRLA warns that, for the vast majority of
tenants, landlords selling properties spells bad news. As it stands one in eight renters can purchase a home in the area in which they currently live, according to Oxford Economics. Tis will be compounded by decisions made in
the Budget which will further stifle supply in the rental market and increase stamp duty for many first–time buyers.
Meanwhile, mortgage rates are expected to
remain higher for longer than expected according to the Office for Budget Responsibility. Te lack of housing in the rental market will be
felt hardest by those in receipt of housing benefits who face the prospect of their support for housing costs being frozen from next year. Ben Beadle, chief executive of the National
Residential Landlords Association, said: “Tenants the length and breadth of the country know that there are not enough homes to rent. Rather than
seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place. “while landlords selling up might benefit a
minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes. It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”
Cross–industry group’s letter challenges Minister’s comments on court system
Te NRLA has signed a joint industry letter expressing concern at comments made by the Housing Minister Matthew Pennycook MP, where he suggested that “alarmist” statements had been made about the readiness of the county court system to deal with possession cases following the introduction of the Renters’ Rights Bill. During the Committee stage of the Renters’
Rights Bill in early November, the Minister claimed that these “alarmist” statements were motivated more by “fundamental opposition to the abolition of Section 21 and the current tenancy regime than they are by an impartial assessment of court performance”. Signed by the NRLA, the British Property
Federation, Goodlord, Propertymark and Leaders Romans Group, the letter to the Minister challenges
this view. Te letter explains how the concerns felt by all these organisations regarding the capacity of the court system to deal with possession cases are well–founded and underpinned by robust evidence. Specifically it also shows how other groups
and organisations, such as the Law Society and the Labour–led Housing Select Committee, have questioned the ability of the court and tribunal system to deal with an increase in possession cases. Te letter cites recently–published Ministry of
Justice figures for Q3 2024 which revealed that, on average, it takes approximately 31 weeks (measured by the mean) following a possession claim for a landlord to recover their property using the Section 8 process. Te letter also set out how each of the
signatories is eager to work constructively with the 8 | HMMDecember/January 2025 |
www.housingmmonline.co.uk
Government as it proceeds with the implementation of rental reforms over the near future. However, to ensure this process proceeds as smoothly as possible it is crucial that the Government sets out, clearly and comprehensively, what its anticipated improvements to the court system will look like. Further to a previous letter sent to the
Minister in September, the signatories also call for the following: • For early discussions with the private rented sector about the system which will replace Section 21 evictions to take place as soon as possible.
• For the Government to confirm whether, as suggested recently by an MHCLG official, the implementation period for the Bill will commence two months aſter the legislation receives Royal Assent.
• For the Government to announce when the impact assessment for the Bill will be published now that the Committee stage of the legislative process has ended.
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