MPs told them to their faces: the tenants’ rights bill will make the situation worse

The chief executive of the National Landlords Association has told MPs to their faces that landlord confidence is at an all-time low, which could have a disastrous effect on supply.

Ben Beadle made the remarks while speaking at committee stage of the Tenant Reform Bill, where he appeared alongside Teresa Wallace, a Savills agent who is chair of the Lettings Industry Council.

Beadle described the county court system as “on its knees” and in need of reform if it is to cope with the fallout from the Government’s Tenants’ Rights Bill.

“We have been tracking sentiment among our members for the last 12 years and it is at an all-time low, with only around 10% of landlords actively looking to invest and around a third looking to divest or exit the sector entirely. We see this with a significant number of section 21s being used where the reason is that the landlord is selling,” he told the committee.

The committee has 16 MPs in addition to Housing Minister Matthew Pennycook: 10 Labor MPs, three Conservatives, two Liberal Democrats and one Green MP.

Asked whether he thought current rent levels were “fair and affordable”, Beadle agreed that the 8.4% rise seen in the year to September 2024 was “high by any standard” but insisted the rise was due to a shortage inventory and real estate shortages.

He told members: “It cannot be normal to have 21 people competing to rent every property… the market is not normal and the problems will not be solved by this bill. There are a lot of good things, but they get to the fundamental problem – supply… We need a vibrant private rented sector.”

Beadle called for resources to enable the digitization of courts and the automatic linking of successful possession orders to bailiff services.

“Currently we wait on average seven months to get title to our homes – and that’s very fast. When we get to section 8 (using justification), it will require more resources and more attention – without this we will not see further investment. Our argument has always been about trust and achieving balance.”

Ben told the committee the association was not opposed to the repeal of section 21 provided the replacement was fair and feasible, but was concerned the government had broken its promises for “compelling reasons”.

Meanwhile, Teresa Wallace told MPs that landlords are spooked by the bill and are already leaving the sector with demand rising and supply falling. She said it affects not only rents, but also tenants who are able to afford rent, warning that they are the ones the bill was designed for. to help these, those who are punished.