Real Estate

Smaller portfolio landlords ARE leaving the sector, says Bank of England report – LandlordZONE

Smaller buy-to-let landlords continue to quit the market, according to the Bank of England’s latest update on PRS conditions.

The bank’s findings support the NRLA’s assessment that the landlord exodus is well underway – a position which chief executive Ben Beadle was forced to defend earlier this month.

A Guardian article had accused Beadle of making up stories about the state of the sector in a bid to persuade the government to scrap restrictions on mortgage tax relief, however a Commons committee agreed that he had not misled MPs when giving evidence about the diminishing supply of private rented housing.

Supply

ben beadle nrla

Beadle (pictured) tells LandlordZONE: “Across the country demand for rented housing is massively outstripping supply – a trend which the Bank has once again highlighted in this report. The only losers from this are renters who are struggling to find a place to live.

“It makes no sense to have a tax system which actively discourages the provision of the very homes renters need. That’s why the government needs a proper plan which supports the sector to meet the growing demand from tenants for good quality private rented accommodation.”

Contracting

The Bank of England’s summary of business conditions in the first quarter of the year finds that rental housing supply is still contracting, while demand for properties continues to rise, leading to double-digit rent inflation.

Despite this, tenant groups continue to push the line that the sector is exaggerating the scale of the problem.

This week, London Renters Union sent newsletters to its members claiming that it has forced ministers to admit the landlord lobby and government have peddled lies about landlords leaving the sector because of stronger renter protections on the horizon.

The group says: “It’s outrageous that the landlord lobby has pushed this false narrative to scare government away from protecting renters when the truth is that private profiteering in our housing system is still on the rise.”

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