One of the reasons for the housing crisis is net migration to the UK reached an astonishing 906,000 in the year up to June 2023, far surpassing previous estimates.
Approximately 1.3 million individuals moved to the UK during this period, while 414,000 people left. According to the Office for National Statistics, net migration for the following 12 months was 728,000.
Even worse, we’ve had 1.9 million join the population in the last three years and we didn’t build enough homes.
That’s an influx of people without us having adequate housing and infrastructure in place which makes that level of migration simply unsustainable.
If you want a reason for increasing rents, tenant campaign groups, it’s right there in the government data. It’s not ‘greedy landlords’. Another reason for higher rents is the increasing regulation that must be paid for.
All landlords know this and the notion that we must upgrade rental homes to be a minimum EPC rating of C is also unsustainable. This missive only affects the PRS but not social landlords or, indeed, any other property owner. Including the government.
Instead, we are expected to shell out vast amounts of money to improve the energy performance with a payback of just a few hundred pounds a year.
Again, that’s a reason to put rents up to pay for the capital cost – so tenants can save a few quid on their bills. But that’s nullified by the rent increase. All the while, the government continues to deny an exodus of landlords – but it’s hard to ignore that many landlords are indeed leaving the market.
Not only do landlord organisations say this happening, but those independent voices carrying out PRS surveys such as RICS and Rightmove also see what is going on.
Many landlords won’t want the hassle of meeting the EPC 2030 deadline, but the Renters’ Rights Bill is another point of contention. Although the government’s impact assessment claims it will only cost each landlord £12, experts have debunked these figures as unrealistic.
It’s going to be a lot more – to help push up rents – and yet no one listens.
With so many new residents moving to the UK and landlords exiting the market, one has to wonder if anyone in government can foresee the consequences. The vast majority of landlords take pride in providing affordable, safe housing for families and we don’t need selective licensing cons to convince us otherwise.
Councils aren’t interested in finding criminal landlords ignoring the rules only legitimate, law-abiding landlords who fulfil the criteria – and still get bashed. I’m glad too that Landlord Licensing & Defence flagged up a report earlier this week that councils are barely prosecuting landlords for breaching the rules.
Well, they won’t will they when a civil fine lines the pockets of the council? The lawyers who did the research about councils appear not to have noticed this issue.
If the politicians genuinely cared about housing issues, they would acknowledge the valuable service provided by 99% of landlords and focus on allowing us to thrive while addressing criminal operators.
Instead of persecuting good landlords with taxes and red tape that ultimately raise rents and harm tenants, they should invest in building more homes. Politicians’ efforts are misplaced and ineffective though I do wonder what the long term aim is.
Many landlords feel unfairly labelled as bad actors simply because they sell properties when tenants vacate. That’s because they aren’t interested in spending money on the EPC nonsense, or signing up to a selective licensing scam and the prospect of not having Section 21 is frightening.
So, thanks to the politicians, welcome to a new era of stringent referencing requirements, mandatory home-owning guarantors for tenancies, and automatic annual rent increases starting at maximum prices to avoid bidding wars.
For those with buy to let mortgages dealing with non-paying tenants, it can take a year to 16 months to get an eviction but not get paid the arrears.
Why take that risk? If your borrowings are highly geared, you’ll be snookered with just one non-paying tenant. But there’s a harsh reality about to unload itself onto the PRS.
For many landlords, the numbers no longer add up, and the stress is overwhelming, there must be loads of landlords struggling with mental health issues out there. Politicians can do the maths just like us; many are landlords themselves – including at least one ‘rogue’ landlord – but they are actively avoiding addressing these issues.
When the next set of net migration figures show how many people have moved here and we have a full blown housing crisis because there’s nowhere for people to rent cheaply, what will happen?
The most likely outcome will be that landlords will be hit really hard for pushing up rents to unaffordable levels, while ignoring the antics of governments over the past 20 years. The real shame is that people on low incomes who deserve a lovely, warm and well presented house won’t be able to get one.
There won’t be any. None. And when that penny finally drops about the whys and who is to blame, then perhaps things will change.
Landlords are feeling unfairly treated
Landlords feel they are being “unfairly penalised,” while tenants are being granted too many rights, according to the latest Propertymark Housing Insight Report.
The report reveals the ongoing issue of demand outstripping supply, with many renters struggling with affordability. Propertymark is urging the government to introduce measures to attract investment in the private rented sector.
According to Propertymark’s September report, 35% of adults reported finding it ‘very or somewhat difficult’ to afford their rent or mortgage payments. Demand continues to massively outpace supply, with the average number of applicants per member branch still hitting around 10 people for each available property.
A North West agent told Propertymark that landlords leaving the market is a growing concern.
The agent said “there are not enough properties available to meet the demand and landlords are already considering selling as we get nearer to the Renters’ Rights Bill becoming a reality. The general feeling with landlords is that they are being unfairly penalised, and tenants are being given too many rights to the detriment of landlords.”
An agent in the South West echoed those sentiments and said "the government must do more to provide investment in the private rented sector. Landlords are still leaving the sector, and the government is providing no incentives to attract investment hence, we are heading into a housing crisis.”
The average number of new prospective tenants registered per member branch continues to reflect high market demand. Registrations remained steady, with 113 recorded in September 2024, compared to 112 in August 2024.
In September 2024, average UK rents were 8.4% higher than in the same month the previous year and 0.7% higher than in August 2024. The average rent stood at £1,336 in England, £973 in Scotland, and £760 in Wales.
Nathan Emerson, chief executive of Propertymark, said “tightened purse strings are being seen across the whole private rented sector. The recurring picture of demand far outstripping supply levels is not drastically worsening; however, levels are not improving and will continue to play a huge role in the continuous unaffordable landscape of the sector. We really, need to see the UK government provide a clear and supported pathway for the private rented sector to flourish to support current and future landlords.”
In the residential housing market, Propertymark reveals that the interest rate cut to 4.75% motivated many people to sell their properties.
According to Propertymark’s report, the average number of sales agreed per member branch saw further positive progression with 13 homes placed for sale per member branch. The average number of new prospective buyers registered per member branch saw an uplift in September 2024 to 96 per member branch, representing a two-year high.
The average UK house price increased by £2,076 to £290,000 in September 2024. This remains at around 8 times the average annual gross earnings.
Mr Emerson said “with interest rates slightly easing and improved mortgage deals coming to the market, we are seeing more people looking to make their next home move as their financial stability and reassurance improves. The announcement of Stamp Duty rises in England and Northern Ireland from April 2025 will likely push more people to the market in hopes of completing to, in some cases, save thousands on their next home purchase. With more appetite from buyers comes more homes coming onto the market, so we expect to see activity accelerate over the coming months moving into 2025.”