The end of Section 21?
We've heard a lot about the Renters Reform Bill over the past few years but the time has finally arrived. Government's plan to create a fairer housing market for renters has several components, but the one that seems to have become the main talking point is the abolition of Section 21.
The Renters Reform Bill will do a huge amount to protect tenants and that's incredibly important. But we wanted to know how landlords felt about it. We know from previous polling that there are several concerns about the effect it will have on landlords' ability to regain their property if needed, plus worries about how the court system will cope with the added burden.
With UK rental supply falling to a 10 year low at the end of 2022, anything that might have a further knock on effect on supply is a concern. Tenants are facing an incredibly difficult time, which should mean landlords are rubbing their hands in glee - except we know you're not.
We asked two very simple questions:
- Do you think the end of Section 21 is a good thing?
- Will the end of Section 21 change your approach to Buy to Let?
Here's what you told us.
Do you think the end of Section 21 is a good thing?
- Yes, its a positive change - 3%
- No, its a negative change - 94%
- Dont know - 3%
Will the end of Section 21 change your approach to Buy to Let?
- Yes - I plan to leave the rental market - 41%
- Yes - I'm planning to reduce my portfolio - 33%
- No - I'm not planning any changes - 21%
- No - I'm planning to expand my portfolio - 5%
That means 74% of landlords would either downsize or leave the market altogether if Section 21 is abolished.
In London it's even more pronounced, with 45% saying they plan to leave the market and 34% saying they'll reduce their portfolio - a total of 79%.
If you're looking for more info and data on the UK rental market, check out SpareRoom's new statistics section, which we'll be adding to over the coming weeks and months.