Landlords are leaving the rental market in considerable numbers, with many seeking to offload their buy-to-let properties, causing a significant rise in renters who could potentially become homeless.
Official statistics indicate that in England, over 2,000 households monthly are at risk of homelessness as private landlords are choosing to sell their properties, citing uncertainty due to postponed changes in rental legislation as one reason.
The data further shows that over 40% of families threatened with eviction due to property sales have sought temporary housing aid from their local authorities.
Adding to this issue, a National Residential Landlords Association (NRLA) survey discovered that close to a third of landlords are considering reducing their number of rental homes, while just 9% are contemplating an expansion of their portfolios.
Increased interest rates have discouraged numerous landlords from further investing in the buy-to-let market, as reported by the NRLA.
Riverside, a homelessness charity, describes the situation as a “humanitarian crisis happening quietly in communities throughout England”. This statement comes as recent figures show a record high of 145,800 children living in temporary housing in England, rising by 12% from the previous year.
Trouble in the private rented sector (PRS) is aggravated by the uncertain future of the renters (reform) bill, debated in the House of Lords recently.
Ben Beadle, NRLA’s chief executive, expressed that landlords selling their properties pose the greatest threat to renters, with the solution being to encourage committed landlords to remain in the market to maintain tenancies.
Generation Rent, an advocacy group, accuses the NRLA of threatening to exit the market over even minor enhancements to tenant rights.
Ben Twomey, head of Generation Rent, noted that in the long run, landlords selling their properties might not impact the housing market greatly. Properties can be purchased by other landlords, first-time buyers, or be transformed into social housing. However, tenants are currently vulnerable in the short term, lacking sufficient protection against landlords deciding to sell.
Polly Neate, CEO of Shelter, stated that rental reforms are not to blame for the rise in homelessness but rather the prevalent issue of “no-fault evictions”. With landlords able to evict tenants with just two months’ notice without giving a reason, tenants’ lives can be upended suddenly.
Neate highlights the importance of revising the renters reform bill to offer tenants a more extended period of eviction protection after moving in, as well as longer notices to secure a new residence if the landlord intends to sell or occupy the property.