In the context of upcoming legislative change to the private rented sector, there has been a great deal of press coverage predicting an exodus of landlords. However, research on landlords’ reactions to the proposed legislative changes reveals a more complicated and sometimes contradictory picture.
A recent report by Simply Business found that 75% of landlords are worried about the future of the private rented sector, with 69% stating that constantly changing and confusing legislation is their biggest challenge. Furthermore, 37% view increased regulation of the market, such as the Renters’ Rights Bill, as a major threat.
However, despite these concerns, the report found that 62% of landlords aren’t looking to sell in the next 12 months, and the same percentage feel letting a property is still a worthwhile investment.
The TDS Charitable Foundation’s own Voice of the Landlord survey, echoed this complexity. For example, nearly a quarter of landlords stated that they are dissatisfied overall, and 55% of this group blamed proposed regulatory changes, such as the Renters’ (Reform) Bill (in Parliament at the time of data collection in April-May 2024). A quarter said they were looking to sell their properties, and dissatisfied landlords were more likely to have this intention (53%).
However, when looking at actual portfolio changes in the past 12 months, only 13% sold properties. Surprisingly, 19% of landlords expanded their portfolios during this same period, even as the Bill advanced through Parliament.
In conclusion, research on landlords’ reactions to proposed legislative changes suggests a more nuanced, and sometimes contradictory, picture than what is often presented. While many landlords do feel apprehensive about the new regulations, the evidence suggests that fears of a landlord exodus may be overstated.
