OPINION: ‘Government can’t legislate its way out of housing crisis’

The Government’s focus should be on investment in build-to-rent properties and on mitigating the damage of the tax changes on the horizon, argues lettings head at award-winning estate agency.

Greg Tsuman, Martyn Gerrard

Greg Tsuman, Managing Director for Lettings, Martyn Gerrard Estate Agents, asks – why delay the inevitable, as any further proposed amendments to the Renters’ Rights Bill will only prolong the parliamentary ‘ping-pong’?

He says that whatever was debated in the Lords was little more than political posturing and will not deliver meaningful change to the Bill, given the overwhelming Commons majority. By delaying the inevitable, the Lords know they are helping no one.

The key challenge will be preventing landlords from selling en masse, a scenario which could trigger unprecedented upward pressure on already record-high rents.”

While the Bill undoubtedly falls short of striking a fair balance and will likely make life harder for tenants through unintended – or perhaps otherwise – consequences, we must now pivot to preparation. The focus must shift to educating both landlords and tenants so they can adapt ahead of Royal Assent, which could come within weeks, and a full rollout, which is likely to happen by April next year.

The key challenge will be preventing landlords from selling en masse, a scenario which could trigger unprecedented upward pressure on already record-high rents. If landlords continue to sell without supply being replaced, rents will only move in one direction – up. Managing property is no longer a passive investment; it’s a full-time job. With regulation tightening and compliance becoming more complex, landlords will need to quickly upskill or turn to qualified, professional agents to manage their portfolios effectively.”

Government failing to addess root cause

The Government appears to be attempting to legislate its way out of a chronic housing demand crisis, rather than addressing the root cause. The only sustainable solution lies in building more homes and encouraging greater investment in Build-to-Rent properties. Yet there is little evidence that the current Government will meet its housebuilding targets – let alone deliver enough rental homes to meet the soaring demand.

Many organisations and housing bodies are lobbying for LHA rates to be unfrozen and linked permanently to local rents, but while this would provide much-needed relief for renters, it would also place additional strain on an already stretched welfare budget. Under the Planning and Infrastructure Bill, amendments have been proposed to grant ministers new powers to issue ‘holding directions’ and block councils from refusing planning permission. It’s a welcome intention, but whether it delivers results on the ground remains to be seen.

The real threat:

The Bill itself is not the real challenge – taxation is. Most of the core reforms, including the removal of Section 21, were already pledged by the previous government and are consistent with earlier versions of the Renters Reform Bill under the Levelling Up agenda. Professional landlords should not be surprised or feel caught off guard; this has been on the horizon for some time.

What poses the greater risk now are the tax changes on the horizon – these will determine whether landlords stay in the market or exit, and whether the rental sector can remain stable through the transition ahead.


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