BTL landlords to stop investment in properties post-rent caps – Landbay

Over a third (37%) of buy-to-let (BTL) landlords would stop investing in their existing properties if rent controls were brought in by the Government, research by Landbay has found.

The Renters’ Rights Bill, which was introduced to Parliament last year, represents reforms to England’s private rental sector. It is designed to strengthen tenants’ right, enhance transparency and improve rental conditions, and the Bill introduces substantial regulatory changes.

The bill will also introduce stricter controls on rent increases, requiring landlords to give a two-month lead time, and tenants gain the right to challenge rent increases through tribunals.

Landbay's research asked landlords how they would react when rent caps are introduced, and 37% said they would stop investing in their properties.

A further 16% said they would sell their rental properties if the bill does go through, while 12% admitted they would bend the rules to keep rents at a reasonable market level.

Landbay stated that given there are 4.7 million properties in England’s private rented sector, the implications are "enormous".

Its research also suggested that 1.75 million properties would no longer enjoy the levels of investment they currently do if the Renters’ Rights Bill was to become law.

Sales and distribution director at Rob Stanton, said: "It’s really important that we go into the Bill with our eyes open. Rent control always has unintended consequences – and let’s be frank, that is exactly what we are signing up for with the Renters’ Rights Bill.

"Rent controls, while well-intentioned, risk driving landlords out of the market or into workarounds that undermine the very tenants they aim to protect. We’re staring at a future where quality rented housing dwindles. If 350,000 landlords, with roughly 750,000 properties, leave the private rented sector, and landlords stop investing in 1.75 million properties, at least 44% of England’s remaining private rented sector will face neglect and under investment

"Landlords aren’t the enemy; they’re responding to a market being squeezed dry. Ignore the evidence, and we’ll all pay the price. This is very bad news for the Government."



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