A prominent property website, which monitors the lettings market, suggests that rent controls would drive a proportion of rental stock to short let platforms such as Airbnb.
That’s the warning from property platform Home, which speaks of “an unprecedented decline in available rental stock on the market” from around 120,000 properties available for renting in February 2019 to scarcely 50,000 now, February 2022.
Home says this represents a massive 58 per cent fall in three years.
It suggests that Greater London is now the main driver of rental inflation overall, as tenants return to the capital following the easing in Covid restrictions.
And it believes that rental affordability is looking stretched in all regions, including London, but due to supply constraints here are unlikely to be significant rent falls this year.
More likely is a period of consolidation at these higher levels, it suggests.
Home says: “What is immediately apparent is that, while there is so little choice for prospective tenants, it is unlikely that rents will fall. Letting agents are overwhelmed with demand and renters have no real bargaining room in the majority of lets.
“Setting rent controls would only make the situation worse as landlords would likely exit or switch to Airbnb-style letting.
“In order to improve the choice for tenants and keep rents in check, we clearly need more competition and that means more properties available for rent. To achieve that, the government must stop disincentivising buy to let through taxation and further regulation. However, the new Levelling Up agenda seems to be offering precisely the opposite.”
Politicians across the UK appear to be growing more vocal in their support for rent controls.
The Welsh nationalist party Plaid Cymru has put down a motion in a bid to get the Welsh Government to implement rent controls across that country.
The idea is already enshrined in a policy agreement between Welsh Labour and Plaid Cymru.
Meanwhile the mayor of Labour-controlled Bristol council is teaming up with local activists to look at how to introduce rent controls in the city.
At a so-called ‘summit’ on March 2, Mayor Marvin Rees will set out his goals to have more powers over landlords.
He says: “I made a manifesto commitment to campaign for the power to introduce rent controls to make Bristol an affordable living city, and we are calling on government to give us the power to regulate rents.
“Piloting rent control in Bristol will allow us to take a step towards tackling our local renting crisis and will help us develop learnings and that can inform wider positive change for the rest of the city.”
And in London mayor Sadiq Khan has repeated his calls for controls.
In a statement last week he said: “I want to see tougher penalties for rogue operators and this action can only come from the government. Poor housing conditions and exploitative rents have an awful impact on both the physical and mental health of tenants and these actions need to have consequences.”
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When will they realise we are not the enemy?
Tricia, it's hardwired into their DNA I'm afraid.
When they decide to engage with us … in other words never!
''These actions need to have consequences'' that's rich coming from a council, it's as much their's and central government's actions that have consequences in the PRS. The threat of EPC 'C' is having consequences already as landlords sell up, add to that the threat of rent controls and many more will either sell up or go over to air b&b.
The Councils and Government have a rental crisis because of their Policies of over Taxation and regulation at every opportunity. When the impose extra punitive costs on Private Landlords the costs like any business have to be passed on.
If there is a 58 % reduction in rental stock in the Last 3 years. ( Which I tend to believe because in some of the streets I have properties in most of the private Landlords have sold up). This is before the looming EPC disaster.
Moving to Airbnb isn't a "claim". It's a threat or opportunity, depending on your point of view.
Either way, it will mean a reduction in the availability of long term rental properties and the anti landlord rabble rousers have only themselves to blame!
Yep they already have consequences. Poor housing conditions results in less spent on them because of higher taxes and rip off council licence fees
EPC’s EICR’s MTD
And the consequence all round is higher rent
Realistically I can't see that the majority of Rentals would be attractive enough as Air bnbs, so instead what will happen is Landlords will simply sell up, reducing the supply even further in the face of Rent Controls, the deluded out there jump for joy at the end of evil landlords, but fail to realise that A) Demand will outstrip supply B) The supply will be snapped up by the big multinationals such as Banks, Insurance Companies and others such as John Lewis and these companies will have a lot more sway over the government about increasing any rent cap and evictions than the average private landlord.
As usual it is a case of being careful what you wish for, you might not like it when you get it.
I’ve already sold 25% of my portfolio and converted a third to Air B&B. I make more money overall for sure and pay less tax than I did before all the crap that’s been thrown at us but it’s hard work!! Give me back my tax relief and I’ll put my properties back to AST’s and expand my portfolio again. Bring in rent controls and I’ll just sell what I can’t turn in to an Air B&B. Bring in controls on Air B&B and I’ll just sell everything . I know where I’m not wanted.
No way ,I’d sell up before going air bnb
I live in the N.W in a pennine village i know all my tennants and families, we dont need all this red tape,it all works fine,London drives everthing like there is only THAT London and if an adsent landord in London doesnt behave we all pay for it!
Way back in the 1970s I was young and foolish enough to by a flat with a sitting tenant. It had an outside toilet, no bathroom of course, no kitchen to speak of other than a sink with no hot water and the electrics were dangerous but I was an electrician and plumbing wasn't/isn't rocket science so I set about rewiring the flat, forming a bathroom with hot water and inside loo, installed what was a reasonable kitchen for its day and decorated throughout. The rent at the time was £5. 25p per week ( this was the 1970s) and applied to the local council for a rent increase. After they inspected the flat I was invited to a rent tribunal and the outcome was a 25p per week increase so for anyone who believes rent controls will be fair to both sides I'd say you need to put a bit more water with whatever it is you're drinking.
David, agree landlord never going to get justice from a rent Officer or Tribunal that’s well established. When ever I see your name it reminds me of another wonderful man David Saunders former Chairman of NLA sadly no longer with us.
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