One of the ELA board members, Charlie Baker has written to the Lords to express concerns about the implications of the Renters' Rights Bill & the ELA board support this letter. Charlie has worked in financial services for over 20 years and specifically in mortgage advice for over 10 of those, she is a landlord, and an ELA Board member, benefiting from an alternative overview of the bill and its potential implications.
Open Letter to the house of Lords regarding the Renters' Rights Bill and its detrimental impact on renters and the vulnerable
Subject: Urgent Concerns Regarding the Renters' Rights Bill & its implications
Summary
As a mortgage broker who helps first time buyers buy homes, landlords buy & finance private rental properties, a private landlord and a board member of the Eastern Landlords Association I have a working view of several areas concerned and I have serious concerns about the Renters' Rights Bill's potential consequences for renters and homelessness.
Recent government policies have destabilised the private rental sector (PRS). Tax changes in 2017, impacting mortgage interest relief, significantly reduced landlord profitability and in some cases, access to buy-to-let mortgages. The pandemic exacerbated this, delaying landlords from selling, leading to a backlog and subsequent mass exodus from the market. Rising interest rates and inflation in 2022 further squeezed landlords & combined with high inflation led to increased rents. The current Renters' Rights Bill has amplified uncertainty, prompting more landlords to sell, further reducing supply and driving up rents. It's projected that up to 41% of landlords plan to sell or reduce their property holdings, with only 6% intending to buy or increase.
This dwindling supply directly fuels further rising rents, exacerbating the housing crisis. A recent House of Commons report highlights record homelessness levels & competing government departments trying to find housing for migrants competing with local authorities trying to source housing for homeless families are exasperating the chronic shortage of rental properties. The inadequacy of Local Housing Allowance (LHA) rates, the cost-of-living crisis, and the financial strain on local authorities is all adding to the crisis we now face. The report also points out that rent arrears, often leading to evictions, are directly linked to tenants' ability to pay rent.
Contrary to the belief that landlord sales will increase homeownership, many private renters cannot buy even with lower prices. Reasons include: credit history issues, lack of permanent residency status, unstable income (gig economy, etc.), age (over 55), and reliance on housing benefits (which are incompatible with mortgage affordability). 5.5 million households rely on housing benefit (or UC housing element) support, making homeownership unrealistic for them. Where will these people go if the PRS continues to shrink?
The proposed Renters' Rights Bill risks a surge in homelessness and unsustainable rent increases. The Bill's imbalance, lack of transparency, and inadequate supporting infrastructure (courts, ombudsman, systems) will disproportionately harm the most vulnerable. While corporate landlords and council-linked entities may acquire some properties, they often operate with similar market-rate rents and sometimes even more aggressive eviction practices.
While renter protection is vital, the current Bill is flawed. It must balance the interests of both the tenant and landlord. Landlords are often unfairly criticised for profit, while other essential sectors (water, supermarkets & large construction companies) face no such scrutiny despite increased costs affecting the cost of living and gigantic profits of recent years. Data shows a stable average rental income, and recent tax changes have actually reduced Treasury revenue, contradicting the narrative of excessive landlord profits. The NRLA's research demonstrates the negative impact of the earlier tax changes on the rental market.
The narrative that renters can't buy homes is often misleading. Many can buy with the right guidance. We need to empower young people with financial literacy and clearer pathways to homeownership.
The current approach risks adding to the housing crisis, and whilst a balanced, evidence-based solution to the PRS & tenant security is essential, the RRB in its current form is not it.
We have received a response from Lord Best who has confirmed he has heard from those representing both landlords and renters interests and hopes his views will be balanced. He also confirms he will be proposing several amendments.
We appreciate the need to stand up for good landlords and the vital role they play in our housing market. We have also sent the letter to several East Anglia Based MP's and will keep you updated as the Bill continues its journey.
Comments