The number of households in the private rented sector at risk of homelessness due to landlords selling up has increased by a third since the end of last year.

The analysis by the National Residential Landlords Association highlights the need to encourage responsible landlords to stay in the market, the trade body explains.

According to government data, between October and December 2023, 5,400 households in the private rented sector in England qualified for council support to prevent homelessness after their landlord decided to sell the property. The most recent data shows that between April and June 2024, this number had increased to 7,130 households.

The figures show that selling a property is the single biggest reason for a landlord to end a tenancy, and almost three times bigger than the next most common reason.

Whilst the Renters’ Rights Bill will increase the time before a landlord can sell a property, the NRLA argues that more needs to be done to encourage responsible landlords to keep rental properties in the first place.

Government data shows that a third of landlords (31%) are planning to sell properties they rent out in the next two years, up from 22%. In contrast, just 7% say they are planning to provide new homes to rent in the next two years, compared with 11% in 2021.

It comes as an average of 21 people are chasing every available home to rent. 

The NRLA is calling on the government to reform the way rented housing is taxed to support and encourage the supply of new, decent quality homes on the market.

Alongside this, it says responsible landlords need confidence that when ‘no fault’ repossessions end, legitimate possession cases will be processed far more swiftly by the courts than at present. The NRLA is therefore calling on the government to publish a clear plan to improve what the Housing Minister Matthew Pennycook accepts is a court system on its knees.

Ben Beadle, chief executive of the National Residential Landlords Association, says: “Right across the country it is tenants who are suffering as landlords decide to sell up. No amount of changing the rules about when landlords can sell will address the central problem in the rental market, namely a chronic shortage of homes to meet demand.

“What tenants need is greater choice. That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing.”