“Mass exodus of private landlords is a catastrophe for the country”, says Phil Spencer

Phil Spencer

The growing number of buy-to-let landlords exiting the private rented sector (PRS), owed largely to an increase in regulation and taxes, is a major cause for concern, and an issue that the government can no longer afford to ignore, according to TV presenter Phil Spencer and Vanessa Warwick, co-founder of PropertyTribes,

A number of BTL landlords have divested their portfolios and left the private rented sector (PRS) in recent years and this has led to a significant reduction in the supply of much needed privately rented homes across many parts of the country.

“The more landlords who sell up, the less rental properties there are, and therefore the rents are increasing,” said Spencer. “A mass exodus of landlords is a catastrophe for the country.”

Spencer, during a discussion with Warwick, which you can see view below, pointed out that close to five million people reside in the PRS, and “they all need somewhere to live”.

Tax hikes, including stamp duty changes on buy-to-let and the loss of tax-free allowances, have driven away some landlords and crippled the PRS, with most property professionals, including agents, acknowledging that being a landlord is now much harder than it was say five years ago.

Vanessa Warwick

National journalists at the BBC have started to conduct research into the PRS and what lies behind the shortage of stock, and this is something that Warwick makes reference to.

With the UK government’s Renters’ Reforms White Paper looming, the consultation on A new Deal for Tenants in Scotland and legislation coming into force including the Renting Homes (Wales) Act and the Private Tenancies Bill in Northern Ireland it seems no landlord or agent is safe from further regulation.

Warwick said: “Landlords are being hammered from all quarters and a lot of them are leaving, as their margins are really thin.”

“New landlords are not coming into the sector, reflecting the challenging environment at the moment,” she added.

Comments 4

  1. Perhaps landlords should be thanking Shelter, Generation Rant, and the Government for their efforts in increasing rent and demand for our properties. It gives us a greater choice of tenants to select from, it gives us the opportunity to increase and maximise rents, it reduces void periods. It has reduced the need to even consider less satisfactory tenants to add to the benefit. Maybe we have been looking at the way these clowns work in the wrong way? With the soon to be abolished s21 demanded by Shelter demand will only increase as will rents; add to that the EPC changes which many landlords will not be able to reasonably meet many landlords will sell up. It helps first time buyers get on the market (if they earn enough) as well, to add to the positives. Mind you if you are the typical client of Shelter, Generation Rant etc I am not sure how good you will be feeling. Perhaps it will be come to be know as “Putin Syndrome”. Just a different take on matters – how do you see it?

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