Despite concerns, the Renters’ Rights Bill hasn’t sparked a landlord exodus.
- New data reveals fewer landlords are rushing to sell properties.
- The number of properties with tenants in situ has decreased since June 2024.
- Regional data shows significant declines in landlord listings.
- The upcoming Autumn Budget may influence future landlord decisions.
Despite initial concerns and a lingering sense of anxiety among landlords, new data indicates that the first reading of the Renters’ Rights Bill has not prompted the massive departure from the sector that many had predicted. This apparent stability suggests that landlords may still be willing to navigate the legislative changes rather than making premature exits.
According to research conducted by Lomond, the number of residential properties entering the sales market with tenants still residing on the premises in September 2024 was notably lower, at 10,041 properties, compared to 12,423 in June of the same year. This is a reduction of 19.2%, indicating that landlords are perhaps taking a measured approach in the wake of the bill’s introduction.
A detailed examination of regional data supports this trend, showing significant reductions in listings across various parts of the UK. In the West Midlands, for example, the number of properties with tenants remaining in situ on the market plummeted by 54.7%, declining from 1,324 in June to just 600 in September. Similarly, the East of England reported a decrease of 50.8%, while the North East experienced a 19.8% decline.
Ed Phillips, CEO of Lomond, provides a perspective on these findings, countering the narrative that landlords are fleeing the market en masse. Instead, he notes that since the bill’s relaunch by the Labour government in late May, there has been no substantial evidence pointing towards a widespread exit. However, he cautions that the situation remains fluid, especially with the Autumn Budget on the horizon.
With potential changes to Capital Gains Tax anticipated, the financial landscape for Buy-to-Let investors may experience further transformations. This looming fiscal event is identified as a crucial juncture that could heavily impact landlord strategies moving forward, possibly reshaping their engagement with the property market.
In sum, while current data offers a reprieve from fears over landlord exits, upcoming fiscal policies may yet redefine the scenario.
