Tenant group: landlord exodus could help renters
In a notable shift in the real estate landscape, Rightmove has reported that the proportion of former rental properties transitioning to the sales market has reached an all-time high. This development has sparked a significant discussion about its implications for renters. Generation Rent, a tenant campaign group, has proposed that this trend could actually benefit renters, despite initial concerns. Here's a closer look at why this might be the case and what changes could make this transition smoother for everyone involved.
Dan Wilson Craw, Deputy Chief Executive of Generation Rent, has put forth an intriguing perspective. According to Wilson Craw, the influx of rental properties into the sales market is not necessarily a negative development for renters. In fact, he argues that it could provide new opportunities for those who have long aspired to own a home. With many renters expressing a desire to buy their own property, the availability of former rental homes on the market could be a step in the right direction.
“Homes that were previously for rent becoming available to buy is not inherently bad for renters,” Wilson Craw noted. He emphasised that for renters with a strong desire to purchase a home, this shift could create new possibilities. As properties that were once rental units become available for sale, it opens up potential pathways for renters to transition from renting to owning.
While the idea of rental properties moving to the sales market holds promise, Wilson Craw highlighted a significant concern. One of the primary issues is the potential for landlords to serve eviction notices to tenants when they decide to sell their properties. This situation can create considerable stress and upheaval for tenants, who may face unexpected disruptions to their lives.
Generation Rent advocates for stronger protections for tenants in these situations. Wilson Craw suggested that the forthcoming Renters' Rights Bill should address these concerns by incorporating measures that would allow tenants to stay in their homes if a property is sold. Specifically, he proposed that tenants should have the opportunity to purchase the property themselves or remain in place if another landlord acquires it.
“We desperately need protections to keep tenants in our homes or otherwise minimise the upheaval when landlords decide to sell up,” Wilson Craw asserted. He argued that tenants facing eviction should receive more notice and financial assistance to cover the costs of moving, thus reducing the stress and financial burden associated with relocating.
The potential benefits of former rental properties entering the sales market align with broader governmental goals aimed at increasing homeownership. The government has long emphasised the importance of helping renters become homeowners, and the current trend could support this objective. By ensuring that more properties are available for purchase, there is a possibility of advancing the goal of greater homeownership.
Wilson Craw also pointed out that the solution to the affordability crisis in renting lies in increasing the supply of homes rather than relying solely on the presence of landlords. “Looking at the bigger picture, homes moving from rental to sale opens doors for renters to become homeowners,” he said. Providing affordable housing options in desirable locations is crucial for addressing the ongoing crisis in the rental market.
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