‘Responsible landlords’ urged to stay in the private housing market
The UK’s landlord association has urged landlords to remain within the country’s private housing sector, warning that their exit could lead to a ‘disastrous’ outcome for tenants.
Arguing that private landlords selling up is a direct cause of homelessness, the National Residential Landlords Association (NRLA) said that “responsible landlords” need to stay in the market to “keep tenants in their homes”.
“For millions of renters across the country, whether a landlord sells a property or not will decide the fate of where they live.
“Landlords selling homes is disastrous for tenants. Even if properties sold end up back in the rental market, that’s scant comfort for those who have been forced to move as a result,” Ben Beadle, Chief Executive of the National Residential Landlords Association, said.
Private landlords account for about 84 per cent of all tenancies in the UK, while just under a fifth of UK homes are privately rented.
Beadle urged Chancellor Rachel Reeves to “support responsible private landlords” and encourage investment in new decent quality, long-term homes to rent.
The rental market is undeniably tough, with inflation, high interest rates and regulation stretching yields ever-further, but recent changes have affected private landlords far more than professional landlords.
Crucially, private landlords are only able to deduct 20 per cent of their mortgage interest from their rental income when calculating their tax bill, down from between 40 and 45 per cent in 2017.
This became a particularly acute issue after the outbreak of war in Ukraine, when interest rates and mortgages rocketed.
Private rental sector a ‘crucial part’ of the housing ecosystem
The role of a private, individual landlord has been getting tougher for years, and public opinion has, simultaneously, been souring towards the profession.
There has been a sharp divergence in the attitudes of private and professional landlords: Professional landlords are overwhelmingly optimistic about the prospects for the UK’s rented sector. Private landlords are not.
But Sam Humphreys, head of M&A at Dwelly, said that for those who “take a professional approach”, the sector is still “highly profitable and viable”.
“These landlords are best placed to continue delivering quality, well managed homes… These individuals are typically well accustomed to changing government regulations and will have the resilience to adapt to the new legislation”.
“The private rental sector is a crucial part of the housing ecosystem, especially as homeownership becomes less accessible… Government must tread carefully to avoid deterring landlords and worsening the housing crisis,” Humphreys said.
Buy-to-let mortgages – surprisingly – surged 40 per cent in the first quarter of 2025, although some experts warned that this was largely a result of landlords trying to take advantage of stamp duty relief rather than evidence of a turn in sentiment.
Will the Renters’ Rights Bill make things worse?
Industry experts have offered wildly different opinions on what the effect of the upcoming Renters’ Rights Bill will be, with some arguing that it’s an essential tool to rebalance the relationship between tenants and landlords and other convinced it will cause investment to dry up.
Lords blasted the bill during its third reading at the start of July, arguing that it risked doing damage to tenants by pushing landlords out of the sector and towards short-term lets.
“It threatens to drive landlords out of the market, reducing the number of available homes, and pushing up rents even higher,” Lady Bybrook said.
“Balance is essential, and on these benches, we do not believe this bill strikes the right balance… [the] bill that risks driving out good landlords while allowing the rogue ones to continue operating completely,” she added.
Humphreys said that the increased red tape expected from the Renters’ Rights Bill will “force some amateur landlords to exit the sector, ultimately reducing supply and harming renters through rising rents and poorer housing standards”.
The UK’s biggest landlord, Grainger, voiced a similar opinion earlier this year: “It is likely that many smaller, private individual landlords will find the new regime challenging and will therefore accelerate their exit from the market, further constraining supply,” CEO Helen Gordon said.