Renters’ Rights Act blamed for shrinking rental supply

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Renters’ Rights Act blamed for shrinking rental supply

The Renters’ Rights Act has caused unintended consequences, with tenants struggling to find affordable places to live as landlords sell up.

The Daily Mail reports a growing imbalance between supply and demand as rents keep rising.

Propertymark urges the government to invest in the private rented sector to keep good landlords in the market.

Market is oversaturated

Many young people in London are struggling to find an affordable place to rent as rental supply drops.

Laura Meyer, 28, told the Daily Mail, a shortage of rental properties is driving competition among tenants.

She said: “The market is oversaturated right now, with fewer landlords and more people looking.

“One of the agents told me that normally in the summer she gets about 50 calls a day, but, because of the Renters’ Rights Act, she is getting more than 120. I have now put offers on three places, none have been accepted and I’m still looking. I’ve probably had to view about 50 places at this point.”

Lydia Holt, 25, also told the Mail she has been looking for a new place to rent in September but is finding it tricky to find anywhere affordable.

She said: “In Finsbury Park in London where I rent now, we got a three-bed for between £2,800 and £2,900, which is just shy of a grand a month each.

“Whereas now when we were looking at two beds you wouldn’t get anywhere decent for under the £2,800 mark. So it’s gone up around £400 each a month.

“When we spoke to estate agents they said: “We are just putting properties on the market for 20% more than what we think they should go for, because that’s what we think people would have offered.”

Biggest change in 30 years

Nathan Emerson, chief executive of Propertymark, told Property118 the Renters’ Rights Act has had unintended consequences for the rental market, although it may still be too early to assess its full impact.

He said: “Across England, the Renters’ Rights Act represents one of the biggest changes to the lettings sector in over 30 years, strengthening tenant protections but also creating unintended consequences. Some landlords are now reassessing whether they can remain in the sector, with others choosing to sell.

“This risks reducing private rented stock and putting heightened pressure on housing supply at a time of growing demand. Ultimately, the sector needs continued investment and appropriate support for good-quality landlords to ensure a diverse supply of homes keeps pace with ongoing real-world pressure already widely seen within the marketplace currently.

“However, considering we are only three months into the Renters’ Rights Act being implemented, it may still be too early to tell what proportion of them have started selling their properties as a result.”

The news comes as rent tribunal cases have surged since the Renters’ Rights Act took effect.

The post Renters’ Rights Act blamed for shrinking rental supply appeared first on Property118.

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