Are tenants beginning to see the problem of landlords leaving?

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Are tenants beginning to see the problem of landlords leaving?

Like Thelma and Louise hurtling towards the cliff edge, more people are beginning to see the problems coming with the Renters’ Rights Act.

Thankfully, tenants are now asking why landlords are leaving and why rents are rising.

I say that after reading the comments under a BBC story this week about rents topping £1,000 a month across more than half of Britain’s neighbourhoods.

The story appeared on Property118 too, but the Beeb’s version didn’t just attract the predictable landlord-bashing.

But sadly, much like Thelma and Louise, I suspect we are already too close to the edge to slam on the brakes and save the private rented sector in its current form.

Zoopla’s research shows the average rent for a new tenancy is now more than £1,000 a month in 52% of British neighbourhoods, up from just 23% in 2020.

Rents have risen 36% over five years. Wages have increased too, though nowhere near enough to keep pace.

Rental supply shrinking

Predictably, the commentators said this was bad because landlords are simply charging more.

However, instead of a pile on of others agreeing that landlords are raking in cash for doing nothing (!), I was struck by a new narrative.

It is probably being driven by growing numbers of tenants discovering the basic economics of supply and demand as they try to find somewhere to live.

Several pointed to something landlords have warned about for years: thousands are selling up.

When supply shrinks but demand stays strong, rents rise. That is not ideology; it is arithmetic.

There was even a nod to the rising costs for landlords, from mortgages to tax and regulation, which inevitably land with the tenant at the end of the line paying more.

For years this argument was dismissed as special pleading from landlords protecting their interests.

But now renters themselves are beginning to feel the consequences.

Who replaces selling landlords?

One tenant explained that their landlord had increased the rent by £150 a month after being forced to pay for professional compliance advice.

Others raised the longer-term structural problem: if smaller landlords exit, who replaces them?

In many cases the answer is not first-time buyers.

It is increasingly likely that institutional investors, property companies or cash buyers expanding portfolios will be stepping in.

And more tenants appear to be appreciating what small landlords offer, rather than faceless corporations.

No one defends rogue landlords or poor housing standards, but government policy often has unintended consequences, particularly when it collides with economic reality.

Young people are struggling

Young people are being hit from all sides: high rents, high house prices and large student debts.

For many of them, renting privately is not a lifestyle choice since it has become the only viable housing option.

If the market continues to shrink, the consequences extend far beyond landlords and tenants.

Labour mobility suffers and graduates cannot easily move cities for work.

Their disposable income drains away into housing costs rather than the wider economy.

And yet much of the political conversation continues to treat landlords as a problem to be eliminated rather than being part of the housing system.

What replaces the small landlord?

The irony is brutal and the very people the Act was meant to protect are about to discover that ‘corporate’ and ‘institutional’ landlords are remote and slower to fix things.

Councils and housing associations leave some properties dangerous for years, yet the narrative is that every private landlord is a pantomime villain.

The Act will see more landlords heading for the exit, rents will keep climbing but tenants are starting to speak.

They can see what is happening now, and that’s without the struggles facing landlords after May’s implementation of the Act.

All tenants need to understand that this crisis was made in Westminster, not by the people who actually provide the homes.

Demonise productive capital and watch it vanish.

The unintended consequence is staring us in the face: fewer homes, higher rents and a generation locked out.

And like Thelma and Louise discovering gravity at the edge of the canyon, the laws of supply and demand have a habit of asserting themselves whether politicians believe in them or not.

Until next time,

The Landlord Crusader

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Councils collect just 25% of landlord fines

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Councils collect just 25% of landlord fines

Councils in England have collected only a quarter of the civil penalties issued to landlords for housing offences over the past two years, research reveals.

The National Residential Landlords Association says its data was obtained through Freedom of Information requests to English councils responsible for PRS enforcement.

Across 2023/24 and 2024/25, 285 councils imposed almost £30 million in civil penalties on private landlords.

Just under £7.5 million of that total was actually recovered.

Fed-up responsible landlords

The NRLA’s chief executive, Ben Beadle, said: “Tenants and the vast majority of responsible landlords will rightly be fed up with our findings.

“For too long a minority of rogue and criminal operators have allowed to act with impunity, bringing the sector into disrepute.

“It is galling then to see that those breaking the law are still failing to pay the price – leaving good landlords to pick up the tab in licensing fees.”

He added: “This also raises serious questions about how ready councils are to enforce the Renters’ Rights Act, and about the adequacy of the upfront funding provided to them to support enforcement action.”

RRA implemented in May

The NRLA says that the same records show that nearly 3,700 civil penalties were issued to landlords during the two-year period.

Its research has been published ahead of the Renters’ Rights Act coming into force on 1 May.

Under the legislation, the maximum civil penalty available to councils will increase from £7,000 to £40,000.

According to the NRLA, the figures indicate that councils are not collecting funds that could otherwise be used to support enforcement activity in the private rented sector.

Examine council enforcement funding

The organisation says the issue raises questions about how local authorities will enforce the new regime once the higher civil penalties become available.

Alongside the research, the NRLA is calling for the creation of a new Chief Environmental Health Officer post with a national remit for improving enforcement standards.

It is also urging the government to undertake a full assessment of the resources currently available to local authority enforcement teams.

It says an analysis of the funding they will require to enforce the Renters’ Rights Act is needed.

The organisation also says councils should be required to publish an annual report setting out enforcement activity relating to the PRS in their area.

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Landlords told not to wait until Decent Homes Standard to fix rental homes

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Landlords told not to wait until Decent Homes Standard to fix rental homes

The government insists private landlords must not wait until the Decent Homes Standard 2035 deadline to improve rental properties.

Under the Decent Homes Standard, landlords will need to meet certain criteria, including that homes must be in a reasonable state of repair and provide core facilities and services, including a kitchen with adequate space and layout, an appropriately located bathroom and WC, and adequate protection from external noise.

A government document says homes must also be equipped with child-resistant window restrictors and provide a reasonable degree of thermal comfort.

Should not wait until 2035 deadline

In a written question, Labour MP Vicky Foxcroft asked the government: “Whether it has an assessment of the potential merits of expediting implementation of the Decent Homes Standard to improve maintenance practices in privately rented properties.”

In response, Housing Minister Matthew Pennycook claimed landlords must improve rental properties before the 2035 deadline.

He said: “Private rented sector landlords should address non-decency wherever it exists. While we are giving landlords until 2035 to implement our new Decent Homes Standard, we have made clear they should not wait until 2035 to improve their properties.

“We are also acting in other ways to ensure private tenants have safe, warm, and decent homes, including introducing new Minimum Energy Efficiency Standards for the sector; strengthening local authority enforcement in respect of unremedied hazards; and applying Awaab’s Law Act to the private rented sector through the relevant provisions in the Renters’ Rights Act.”

The government have previously claimed “too many tenants are living in poor quality housing”, with 21% of homes in the Private Rented Sector (PRS) and 10% of homes in the social rented sector failing to meet the Decent Homes Standard.

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Why Many Investors Stay Busy But Do Not Build Real Wealth

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Why Many Investors Stay Busy But Do Not Build Real Wealth

Many investors never ask themselves an important question. What if this year ends up looking exactly like the last one financially?

Not terrible. Not amazing. Just the same.

You worked hard, stayed busy and maybe even made investments. Yet when you step back and look at the results, progress often feels slower than it should.

One common reason is relying on a single strategy to do everything.

The investors who build lasting wealth usually take a different approach. They understand that different assets serve different roles.

The Three Roles Behind Wealth Building

Successful investors tend to focus on three key areas.

Income
Assets that generate regular cash flow provide stability and support your lifestyle.

Growth
Other assets increase in value over time, building long term wealth.

Compounding capital
Protecting and multiplying the capital you already have allows wealth to grow faster over time.

When these three elements work together, progress begins to accelerate.

Where Most People Get Stuck

Most people become reasonably good at making money.

Some learn how to keep more of it.

But far fewer understand how to multiply what they keep.

Without that third step, investors often find themselves working harder each year while their financial progress remains slow.

Working Hard Is Not Always Enough

Many investors stay extremely busy with deals, calls and opportunities.

But activity does not always equal progress.

The real shift happens when investors focus not just on earning more, but on building systems that grow their wealth over time.

When income, growth and compounding are aligned, wealth building stops feeling random and starts gaining momentum.

Want to learn how this works in practice?

Simon Zutshi will be explaining this in more detail during a live online webinar on Wednesday 11th March.

During the session, he will break down the three assets that build real wealth, how they work together, and how investors can position themselves to grow their wealth more effectively.

Book your place on the webinar here.

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