Landlords sound alarm on potential election impact

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A nationwide survey conducted by Leaders Romans Group, which we're part of, has captured landlords’ and tenants’ growing anxieties about the potential impact of the election on the private rental market (PRS). The results reveal significant concerns over proposed rent controls, property taxes, and regulatory changes, urging political leaders to consider the far-reaching implications of their policies.

The survey, which gathered responses from over 1,200 landlords and tenants across England and Wales, highlights a prevailing sense of uncertainty.

One landlord remarked, “A balanced and fair Renters (Reform) Bill is essential for the stability of the rental market. Overly stringent regulations could discourage investment and reduce the availability of rental properties.”

Another landlord expressed concern over proposed rent controls, stating, “Rent controls might seem beneficial in the short term, but they could lead to a reduction in the quality and quantity of available rental properties. This could hurt both landlords and tenants in the long run.”

The survey results indicated that 60% of landlords are particularly worried about potential increases in property taxes, which they believe could lead to higher rental prices. Additionally, 45% of respondents expressed concerns about the introduction of new regulatory measures that could complicate the rental process.

From the comments collected, a landlord highlighted, “A fair policy to both the landlord and tenants is crucial. The proposed policies should ensure that landlords are not overly burdened with taxes and regulations, which might ultimately lead to higher costs for tenants.”

Tenants also shared their perspectives, with many echoing the landlords’ concerns. A tenant commented, “We need fair policies that protect tenants’ rights without driving landlords out of the market. It’s a delicate balance that needs careful consideration.”

Another tenant remarked, “Rental affordability is a significant concern. Policies should aim to make renting more affordable while ensuring that landlords can maintain and invest in their properties.”

The survey also asked respondents to identify the three biggest causes of the current challenges in the private rental sector (PRS). The top issues highlighted were:

1. Inflation and the cost of living: this was identified as a major concern by 55% of landlords and 78% of tenants. The rising cost of living is putting pressure on both landlords and tenants, making it harder to maintain affordable rental prices.
2. High rents: high rents were highlighted by 17% of landlords and 88% of tenants.
3. Lack of social housing: this was noted by 41% of landlords and 32% of tenants. The shortage of social housing is pushing more people into the private rental sector, increasing demand and driving up prices.

The survey also explored potential solutions to reduce evictions. Getting the cost of living under control was deemed most important by 34% of landlords and 58% of tenants. Additionally, 39% of landlords suggested cutting taxation on landlords as a viable solution.

Allison Thompson, National Lettings Managing Director at LRG commented on the findings, “This survey highlights the critical concerns faced by both landlords and tenants in today’s volatile market. The start of a new parliamentary term presents a pivotal moment for the party in power to address these issues with balanced and thoughtful policies. It’s essential that we create a fair and sustainable rental environment that supports both landlords’ ability to invest and maintain properties and tenants’ access to affordable housing.”