Anti-Landlord Sentiment is Changing - now we need action

I often use this column to discuss the reputation of landlords and the broader private rented sector which, as we all know, is much maligned. 

But I have noticed a distinct shift in attitudes towards landlords in recent weeks as journalists and media commentators seem to have finally woken up to the fact that we need a healthy rental sector, as well as the good landlords that supply the properties that millions call home. 

The PRS is the engine room of the economy, the tenure of the working person. Nearly three quarters of PRS households are in work, so its importance to the economic health of the UK is vital.

The narrative has moved away from the cliched rogue and greedy landlord to one where personal finance editors and wider commentators are recognising that landlords need support too. 

I have seen stories where landlords have racked up thousands of pounds in costs because of poor tenant behaviour, whilst the images of students queuing around the block to secure rental property – or worse sleeping in hallways or in tents – is ramming home the severe property shortage crisis. 

I liken this to the bamboo effect; the impact of the changes to the PRS and buy-to-let market introduced in the latter half of the previous decade have largely gone unnoticed until the problem has shot up rapidly over the past six to 12 months. 

The welcome news is that this message finally seems to be getting through to our MPs and policymakers (south of the border at least!). 

Bodies such as the National Residential Landlords Association, as well as banks including Paragon, have been speaking to Government and the opposition for some time about the strains the PRS is under and the pressures facing landlords, but recognition of the problem has been slow. 

Whilst I despaired in last month’s column at some of the comments made about the sector from the podium floor at party conferences, statements coming out of recent Westminster debates have been far more nuanced than before, with certain ministers recognising the role of landlords and how some of the upcoming regulatory changes could impact them. 

It’s a step in the right direction, but we need this to be followed up with action. 

I was encouraged that Felicity Buchan, the new Housing and Homelessness Minister with responsibility for the PRS, recently noted in a House of Commons debate on the Renters Reform White Paper that landlords have an important role to play, and that the Government does not want to discourage investment in the market.

As the Renters Reform Bill flows through the legislative process, we would certainly like to see some clarity in areas such as how student property is treated, as we fear that the proposals as currently worded could cause disruption to that area of the market. We are also keen to hear how the Government will resource the court system so that Section 8 claims can work efficiently and landlords can regain control of their property quickly when required for legitimate reasons. 

We also want to see a considered and responsible approach to the energy efficiency upgrade of PRS stock. The 2025 date for new tenancies to have a minimum EPC grade of C, originally proposed by the Government more than two years ago, is now way too short and so many issues need to be addressed before we can get there. 

Two years - at best, as we are yet to see a response to the Government’s consultation - is unworkable, particularly as landlords face a cost-of-living crisis and there is a lack of skills, resources and guidance to complete the works. We endorse the need to improve the energy performance of rental stock, acknowledging the environmental responsibility that comes with being the UK’s second largest housing tenure, but rushing the fix will only exacerbate the property shortage crisis. 

Landlords have been a rich source of income for the taxman in recent times; however, fatigue is setting in and a further grab through changes to aspects such as Capital Gains Tax may prove too much. 

For the sake of tenants that want to or need to rent a home, I urge the Government to ensure policy is fair and incentivises landlords to continue to invest in the PRS. 

* Richard Rowntree is Managing Director of Mortgages at Paragon Bank *

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