The majority of landlords in Nottingham who responded to a survey are likely to sell their properties due to proposals in the Renters Rights Bill. 

The East Midlands’ largest landlords association, EMPO, is warning that the resulting fall in rental supply will hurt the local economy as well as tenants. 

EMPO says that a smaller rental market, with less choice for tenants, will inevitably lead to increased rents. And as landlords sell-up, the sudden glut of properties for sale could see general house prices go down, hurting homeowners looking to move. 

The survey of EMPO members found that all respondents had concerns about the implications of the Bill with over 50% considering reducing their property portfolios as a result. 

The three biggest issues highlighted in the survey are the abolition of S21 eviction powers resulting in further problems & legal delays in repossessing a property when a tenant is at fault; the removal of Fixed Term Tenancies; and longer time for arrears to accrue.

EMPO’s Paul Rowland says: “The results highlight some of the serious issues facing both landlords and tenants in the private rented sector. It’s very worrying to see that many landlords are likely to sell-up due to the bill. EMPO is not against reform to improve the system, but the current proposals offer no incentive for many responsible landlords to continue letting their properties. We believe the sector should be offering a large choice for tenants, not a smaller one.” 

Rowland says some consequences of the Bill – for example, pressure on the court system – have not been fully considered.

“A mass exodus of landlords leaving the market will also have a damaging effect on the local economy,” he added. “For example, a landlord has spent £100,000 employing local tradespeople to improve his properties. Looking to the future, that’s potentially a huge amount of local business which will be lost” he continues.

“The mandatory threshold for rent arrears is being increased from two to three months and the notice period has been doubled to four weeks. That’s potentially up to 16 weeks in total – it’s not sustainable.”

EMPO is also concerned about a new clause in the Bill banning landlords from requesting advanced rent, other than for the initial period. This could be detrimental to tenants who, for example, have a poor credit history or don’t have a guarantor.

Based in Nottingham, EMPO is a not-for-profit organisation that works to support and represent the needs of the private rented sector across the East Midlands.