Housing minister Rachel Maclean is quoted as saying her government’s policies are NOT driving landlords out of the private rental sector.
The Open Democracy website claims that in a lobby at the House of Commons by anti-landlord activists on Tuesday, Maclean said the narrative that landlords were leaving the market because of new regulations was “wrong”.
The website claims she says: “Will I challenge that narrative? The answer is yes, the narrative is wrong.”
It goes on to state that she says: “What I believe is that there are lots of landlords in the PRS [private rented sector], and each of them will have their own reasons for being in it or not … There’s something like 2.3 million landlords in this country. If one leaves, I’m almost certain another one will come in. So this idea that our regulation will drive them out in the sector. I don’t accept that. I’ve made that case to many colleagues, MPs on the right and the left, from all parties in Parliament.”
Landlord Today has asked the Department of Levelling Up, Housing and Communities for its view on the quotes attributed to the minister.
In a plethora of recent surveys and analyses, it has been suggested that landlords have left the sector because of a series of tax changes and the introduction of stricter regulations, plus the threat of additional changes to the likes of Capital Gains Tax and harsher energy efficiency requirements in rental properties.
Only this week London lettings agency Benham and Reeves says one in 10 landlords plans to exit the sector.
A survey of landlords commissioned by the agency after last week’s Budget found that 49 per cent were disappointed that whisperings of a potential reintroduction of mortgage relief were unfounded.
It was hoped that the government would throw the buy-to-let sector a bone following a string of legislative changes that have caused many to exit the sector and 71 per cent of those surveyed by Benham and Reeves stated that they would have also liked to have seen some other form of incentive announced.
Some 12 per cent of landlords also revealed that they had planned to increase the size of their portfolio but will now refrain, while a further six per cent will still push on with their plans to expand their investment.
However, 10 per cent stated that they will now reduce the size of their portfolio due to a lack of support from the government. What’s more, one in 10 also stated that they plan to exit the sector due to a lack of government incentives to remain.
