Landlords are becoming increasingly worried about both rising costs and the Government’s plans to scrap ‘no fault’ Section 21 evictions next year, it has been claimed.
Among some 1,000 landlords operating within England and Wales who were quizzed by Zero Deposit, 39% said the Government’s planned changes to evictions laws were their chief legislative worry. This includes changes to notice periods and rent increases, giving tenant’s greater rights to have a pet and the introduction of periodic tenancies to replace Assured Shorthold Tenancies.
But landlords told the survey that rising costs were their major concern, prompted largely by higher borrowing costs as interest rates remain high.
“It’s clear that the Renters (Reform) Bill and the abolition of Section 21 evictions, in particular, remain a concern for many landlords,” says Sam Reynolds (pictured), CEO of Zero Deposit.
“It’s seen as fundamental to protecting their property when significant issues arise and with so many factors now working against them, many landlords have reached their tipping point and have exited the market.
“This comes at a time where more stimulus is needed to encourage landlords to invest in the sector, such as a more lenient tax regime.
“Without this, and in the absence of any meaningful progress in the building of new homes, the supply of rental stock will remain insufficient and rental prices will continue to rise in 2024.
“Landlords electing to not increase rents, despite a vast number of reasons to do so, speaks to an understanding of their tenant’s financial constraints.
“In many cases, and in my experience, this underlines the impact of a positive relationship between landlords and tenants with just a small proportion planning to increase rents in the new year.”