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Landlords Selling Up? Generation Rent says it makes no difference!

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. 

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“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. 

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  • George Dawes

    You may as well ask my pet gerbil for financial advice as this bunch of numpties

    I wonder if they actually live on planet earth as its hard to tell from the drivel they continually spout

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    Your pet gerbil would at least be consistent.

     
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    Ben dearest, is this the 50’000, properties that you are short because of the Renters Reform Bill, the Licensing Schemes and your stance on Section 21 removal as irrelevant, well done also just add the hundreds of thousands of landlords that have sold up because of those attacks to add insult to injury high interest rates & Section 24.

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    It does matter if landlords sell up because it is unlikely that other landlords will buy the property. Very few people are prepared to let if the tenants will have security of tenure.

    The Renters Reform bill most certainly doesn't strike the right balance. It is simply the foundation for Labour to create a letting regime where tenants will have absolute security of tenure as soon as they form a Government.

    The NRLA does not represent the opinion of most landlords at all. They have completely failed to put forward the case for fixed term tenancies. In fact, they have been silent about the MPs and peers who have argued for them in Parliament. That is quite extraordinary.

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    The NRLA have completely let the PRS down. I am surprised they have any membership left. They should have fought for 3 year fixed tenancies so a landlord can see an end in sight if he/she wants to sell.

     
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    If there were any possibility of an amendment permitting fixed term tenancies, then I think there would have to be an option for a shorter fixed term for students, and preferably for post-doctoral visiting academics, too.

     
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    Allowing fixed term tenancies would also solve the problem of short lets. If you look on "Letting Agent Today" today you can see that "London Councils" have written to Michael Gove objecting to people letting their properties now as short lets automatically being classified as Class C5 (a new planning category being created by the Government).

    Everything has been so ill thought out, and perhaps that is because there was no proper dialogue with landlords.

     
  • Fed Up Landlord

    The No Resistance Landlords Association is just a money making glorified training quango which sucks up to government. Been a member for 12 years but decided to spend this years renewal on Shelter and Gen Rant memberships for Ben Befuddled as it's clear he has the same destruction of the PRS objective as they do via the Rent Reform Bill.

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    He is trotting out the usual red herring 🤷‍♂️🤷‍♂️ Yes they don’t disappear, but those who rent often cannot buy… those who buy can ALWAYS rent 🫣 What a numpty.

  • Sarah Fox-Moore

    Generation Rent havent got a functioning brain cell between them.

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    Right now I would buy if anything stacked financially. It would be for specific tenants I know who are currently being evicted as their landlord is selling. These are good people who have looked after their homes and have settled lives in their local area.
    It's incredibly frustrating that nothing in the area stacks financially due to high interest rates for a limited company purchase or Section 24 if I bought in my personal name. To make it work financially rent would have to be significantly higher than anything comparable on the market.

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    GenRent are a bunch of pro tenant socialists who somehow have become a voice that politicians listen to! They really do not understand the housing market at all!

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    • K B
    • 20 May 2024 07:49 AM

    What is their purpose in life?
    Maybe they are just trolls who like to wind up landlords and get a reaction
    Wonder what would happen if nobody related to their trolling and no one published their comments

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    Who owns GR? Are they being sponsored by the Corporates? If I was a conspiracy theorist I would question who is financing NRLA? We are living in a climate where nothing makes sense anymore so that is why I ask these questions.

     
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    • A S
    • 20 May 2024 13:02 PM

    Margaret - you are, unfortunately, in a minority, in that you question these things. Not enough of us do. If enough of us did, then we would get the change that is so desperately needed. I fear it'll be a long time waiting.

     
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    The more landlords sell up the less places available for tenants. Can Generation Rediculous not grasp that? Are GR going to build houses? I think not. If a landlord is stuck with sitting tenants in this climate of hate no other landlord will be willing to buy!

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    Their argument that the property does not disappear is technically correct. While it may not disappear, it will more likely than not, disappear from the rental market.

    That it could be purchased by a landlord is pie in the sky thinking. 🤔 The buyers will, very rarely, be tenants, but in their blinkered, anti-landlord thinking, Generation Rant refuse to acknowledge that! 😠

     
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    There's also the double whammy that owner occupied properties have far more spare bedrooms than PRS properties. So even though the house still exists the number of people it accommodates will statistically decrease.

     
  • Nic  Kaz

    “all parties need to accept widespread calls for policies to boost supply in the private rented sector” ….what policies are those exactly, Ben? I can’t think of a single policy designed to encourage investment in PRS to boost supply? Do tell…

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    It would all be laughable if it wasn’t in reality so tragic. GR are so obsessed they haven’t recognised who their real enemy is - the Corporates!

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    Aren't GR the ones who claimed that greedy landlords were forcing people to rent, by snapping up properties and leaving none for first-time buyers? So presumably they are under the illusion that if landlords sell up then there will be fewer people needing to rent as a result?

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    What GR fail to appreciate is that when people rent it makes sense to rent the most cost-effective size of property for the number of people, so a family with two children will rent a 2-bedroom property and the children will share a bedroom, or the dining room will be used as a third bedroom. When people buy, it makes sense to buy the most expesive property they can afford, so a single first time buyer will ideally want to buy at least a 2-bedroom property. That means the same property is a single person home if bought, or a four person family if rented. It's simple economics.
    When it comes to tenants buying their home, I've been trying to encourage mine to do that as I'm planning my exit strategy. What I'm finding is that they fear debt and see a mortgage as just that. I've tried explaining about good and bad debt, but they really don't get it. Most of them know people who have been stung by payday loan companies and they can't get over that concern.

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    Very well put.
    I've had young childless tenants do the Help to Buy thing and buy a brand new 4 bed semi as their starter home.
    Equally I've got tenants living in the cheapest, ugliest property they can find. (I love ugly properties. So much more space for your money and tenants only really look for location and monthly outgoings). One tenant came as a father and teenage son into an incredibly ugly 3 bed (cheaper than any 2 beds at the time). Now one of his daughters and her boyfriend are permitted occupiers as well. Great utilisation of space and very affordable living for all of them.

     
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    I've offered to sell a studio flat to my tenant, been there since 2016, very good tenant. I'm sure it would be possible to get a mortgage where the monthly payments would be lower then the rent. But they declined.

     
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    😂 😂 😂 😂 😂 😂 Laughable! What planet are these buffoons from?

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    Planet benefits!

     
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    So generation rent, after conducting a detailed analysis of their mates opinions, have concluded landlords selling up makes no difference? It’s like listening to children give political opinions. Lefty MP’s in Scotland have made similar arguements along the lines of “well someone will live in them so it doesn’t matter”.

    Being completely unaware of how the housing market works, this simplistic view sounds right. Except, it ignores the most significant factor - if landlords start selling up to FTBers and general owner/occupiers - it reduces demand for new housing. House builders sit on a lot of development land which they will only develop when the market conditions allow for sufficient profit. When we sell up in large enough numbers, the demand drops and housebuilders wait it out. This is a key factor in the housing shortage equation.

    So they can say it doesn’t make a difference but actually it leads to higher rents and maintains the overall shortage of housing stock in the uk. In contrast healthier conditions mean lower rents, more rental stock availability, more demand for new houses which in turn generates more house building.

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    My thoughts exactly!

     
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    • A S
    • 20 May 2024 12:50 PM

    Exactly right Steve. With their simplistic thinking, they think it is a zero sum game, that trading rentals for FTB's is done on a 1 for 1 basis. In reality, rental housing is much more densely populated than owner occupiers, people are more willing to compromise on space when renting. A 2 bed house/flat may be typically rented by 2/3/4 people, however it is likely to be owned by 1/2 people max. Doesn't take a genius to work out what happens if every property moves from being rented to being owned.

     
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    Just checked of the 14 sold only 1 went back as a rental. Would be interested in the ratio of owner to BTL sales made by existing LL’s

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    We ALL know the truth, the Gen rent mob don’t want to listen 🫣

     
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    Jo, it seems you would be happy talking some of the ones being Evicted if the figures stacked but isn’t that one of the reasons they are being evicted.
    Just add a few more reasons Section 21 top of the list, The Renters Reform Bill a close second , Licensing all 3 Schemes, Section 24, Higher interest rates, Landlords targeted unfairly + extraordinary Penalties etc’ so it must be obvious to everyone, everything that’s wrong was deliberately caused and on going.

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