More than a third of landlords will stop investing in their existing properties if rent controls are introduced by the government, according to a new survey.
The Renters’ Rights Bill, introduced to parliament last year, represents one of the most significant reforms to England’s private rental sector (PRS). Designed to strengthen tenants’ rights, enhance transparency, and improve rental conditions, the Bill introduces substantial regulatory changes.
The Bill introduces stricter controls on rent increases, requiring landlords to give a two-month lead time – and tenants gain the right to challenge rent increases through tribunals.
But the survey, carried out by Landbay, asked landlords, ‘How will you react when rent caps are introduced?’. More than a third of those polled (37%) told Landbay they would stop investing in their properties.
Rob Stanton, sales and distribution director at Landbay, said: “It’s really important that we go into the Bill with our eyes open. Rent control always has unintended consequences – and let’s be frank, that is exactly what we are signing up for with the Renters’ Rights Bill.
“We can see it in areas that have adopted it like Berlin, New York, and San Francisco. Trying to manipulate the market will lead to landlords leaving their properties untouched and not investing in them, potentially, lowering the quality of the housing stock.
“In a free market, rents reflect demand and scarcity. That will no longer be the case when the Bill comes in.”
Landbay’s research found that roughly one in six landlords – 16% – say they will sell all their rental properties if the bill goes through.
It also revealed that approximately one in eight (12%) landlords admitted they would bend the rules to keep rents at a reasonable market level.
Stanton added: “Rent controls, while well-intentioned, risk driving landlords out of the market or into workarounds that undermine the very tenants they aim to protect. We’re staring at a future where quality rented housing dwindles.”
