The Generation Rent group of activists says it doesn’t matter if landlords sell up and leave the private rental sector.
Appearing to contradict its own long-held view that landlords selling up is a leading cause of homelessness, the group has apparently hanged its view
A statement from the group’s chief executive, Ben Twomey, says: “Long term, if landlords sell up it makes little difference to the housing market. Bricks and mortar do not sink into the ground, and the home could be bought by another landlord, a first-time buyer or even repurposed for social housing.
“There will always be some landlords wanting to sell, for example because they are retiring or because their mortgages have become too costly.”
Separate data from the National Residential Landlords Association says that of those households eligible for support from their council to prevent homelessness following the end of a private rented tenancy agreement, 45 per cent needed help because their landlord planned to sell the property in the second half of 2023.
This was more than twice as much as the next most common reason for the end of rental tenancies which was landlords planning to re-let the property.
A poll of landlords for the NRLA has found that 83 per cent reported that demand for rental properties by tenants is ‘strong’. The same survey saw 31 per cent say they plan to cut the number of properties they rent out, compared with just nine per cent who plan to increase the number of properties to let.
The NRLA says its findings are supported by recent Rightmove data which indicates that 50,000 properties are needed to bring the supply of rental homes back to pre-pandemic levels.
Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “Landlords selling up is the single biggest challenge renters face. The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.
“As Peers debate the Renters Reform Bill, it is vital that it works for landlords as well as tenants. As it stands it would achieve this balance. We are calling on Peers to support the Bill to give the sector certainty about the future.
“More broadly, all parties need to accept widespread calls for policies to boost supply in the private rented sector.”
Generation Rent says the government should incentivise homes being sold with sitting tenants, or encourage landlords to sell to tenants if they can afford to buy.
