Poll highlights landlord concerns over rent cap plans under Renters’ Rights Bill
A significant share of landlords say they would halt investment in their rental properties if the UK government implements rent control measures, according to new research from buy-to-let lender Landbay.
The findings come amid growing debate around the Renters’ Rights Bill, which proposes sweeping changes to England’s private rented sector. The bill, first introduced to Parliament in 2023, aims to strengthen tenant protections, add transparency, and improve living standards. One of its key provisions includes stricter limits on rent rises, requiring a two-month notice period and granting tenants the right to challenge increases via tribunals.
Landbay surveyed landlords on their expected response if rent caps were introduced. Of those polled, 37% said they would cease investing in their current properties. With England’s private rented sector comprising roughly 4.7 million homes, this could impact investment in around 1.75 million of them.
“It’s really important that we go into the bill with our eyes open,” said Rob Stanton (pictured), sales and distribution director at Landbay. “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.”
Stanton pointed to examples in global cities where rent controls have been implemented, including Berlin, New York, and San Francisco, noting adverse effects such as reduced supply and decreased housing quality.
In Berlin, where a five-year rent freeze was introduced in 2020, rental listings reportedly dropped by more than 50%. Some landlords sold properties, converted them to owner-occupied homes, or left them vacant, while new construction slowed as investor interest waned.
In New York, where certain rent-stabilised apartments are subject to fixed price caps, tenants and landlords alike have reportedly turned to informal arrangements like illegal sublets and “key money” payments to circumvent regulations.
A study on San Francisco’s housing market found that rent control reduced the city’s rental housing supply by around 15%. While tenant turnover fell by 25%, the report noted that rent controls worsened inequality, as existing tenants benefitted while newcomers faced tighter access and higher prices.
Landbay’s survey also found that 16% of landlords would consider selling all of their rental properties should the bill pass, potentially removing up to 750,000 homes from the rental pool. Another 12% admitted they may look for ways to sidestep rent caps to maintain market-rate returns.
“Rent controls, while well-intentioned, risk driving landlords out of the market or into workarounds that undermine the very tenants they aim to protect,” Stanton added. “If 350,000 landlords, with roughly 750,000 properties, leave the private rented sector, and landlords stop investing in 1,750,000 properties, at least 44% of England’s remaining private rented sector will face neglect and under investment.”
The Renters’ Rights Bill continues to make its way through Parliament, with stakeholders on both sides closely watching its progress.
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