Call for ceasefire in government war on lettings sector

The Private Rented Sector needs an amnesty from further government attacks.

That’s the view of research consultancy Pegasus Insight which says without one, landlords will quit, supply will fall, and rents will rise.

The consultancy has hosted a workshop with contributors from Hometrack/Zoopla and the National Residential Landlords Association , as well as more than 20 organisations active in the UK PRS.

Research showcased during the workshop revealed a PRS already changing due high taxes and huge volumes of red tape.

In 2010, landlords with just one property made up 78% of the PRS. By 2024, that figure had dropped to 45%. Now 50% of PRS property is owned by just 20% of landlords.

Pegasus claims Labour’s Renters’ Rights Bill is likely to accelerate that trend, and is causing concern among landlords of all sizes – 81% believe the Bill will have a negative impact on the PRS, with the removal of no-fault evictions the top concern.

That is only topped by worries about potential changes to Capital Gains Tax (CGT), which concerns 85% of landlords.

The prospect of the Bill is already forcing changes in behaviour: 81% of landlords say they will be more selective about who they let to once the Bill is introduced; 62% will put rents up and 23% will look to cut costs by spending less on maintenance.

Most significantly, only 5% of landlords intend to increase the size of their portfolios this year. This figure has been on a downwards trajectory since Q1 of 2022, when 18% planned to expand – 5% is a record low.

Read the full article at Letting Agent Today