Renting revamp will drive out landlords and cost tenants more, critics warn Rental reforms being introduced by the Government are “counter-productive” and will drive decent landlords from the market while pushing up costs faced by tenants, it has been warned at Westminster.
Housing expert Lord Best argued that private landlords selling up and leaving the sector “could be positive” in terms of freeing up homes for owner-occupiers and social renting.
Lord Best suggested that, to incentivise such sales, the Government should consider an exemption from capital gains tax on the sale of properties from private landlords to social landlords.
The proposed legislation seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month’s rent in advance from a new tenant.
He said: “Private renting is seldom the best option for those needing low rents, good quality and long-term security, nor does the enlarged private rented sector suit the taxpayer.
