Prime Minister Sir Keir Starmer has spoken out on the UK’s housing supply crisis, recognising the huge disparity between supply and demand. 

But while it is positive news that Sir Keir appreciates that this imbalance lies at the heart of the issue, he now needs to recognise the vital role played by private sector landlords when it comes to providing homes for millions of households across the country. 

Unfortunately, he has instead chosen to focus on rent levels, figures that are largely dictated by the market, rather than looking at issues that are forcing landlords to sell up. 

The Prime Minister told the Commons Liaison Committee: “Rents have gone through the roof, because the competition for rented accommodation is through the roof.  

“It is through the roof because we have not been building enough houses, and therefore too many people want the same accommodation, which means the landlords are put in a prime position.” 

The argument is as depressing as it is familiar. It’s also something of a paradox – if the PRS is the proverbial land of milk and honey, then why are we seeing landlords leaving the sector in droves? 

It’s not just us saying this, the Government’s own figures back up our argument. 

As Zoopla reports, tenant enquires per property are now 31% higher than pre-pandemic levels, the most recent Government data shows that a third of landlords (31 per cent) are planning to sell properties they rent out in the next two years, up from 22 per cent in 2021.  

In contrast, just seven per cent say they are planning to provide new homes to rent in the next two years, compared with 11 per cent four years ago. 

Hardly the feeding frenzy the Prime Minister is suggesting. 

His answer to the housing crisis is to build more homes – and while, long term, of course this makes sense, it can’t happen overnight – and the Prime Minister knows this. 

We have been lobbying this (and the previous) government for some time, arguing that only by encouraging investment in the private rented sector can we ensure that tenants will be able to find an affordable home in a place where they want to live. 

And we will continue to do so.  

We will also continue to campaign for the lifting of the freeze on Local Housing Rates, which is leaving so many households unable to afford even the very lowest rents in their area. 

A robust private rented sector is vital for the social and economic wellbeing of this country. We need pro-growth measures that will encourage landlords to continue to invest in the sector to provide the rental homes that this country so desperately needs. 

Industry News Chris Norris 20/12/2024