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Have We Come Full Circle in the Rental Sector?
The rental market is changing again… and not for the better in our opinion. For landlords in Telford and across the country, upcoming reforms feel uncomfortably familiar. And ultimately, we’ve been here before, and the outcome last time was a crisis in the private rental sector.
Deja Vu? Before the 1988 Housing Act
Prior to the Housing Act of 1988, most rental agreements gave tenants the right to stay indefinitely. Rents were controlled, landlords struggled to make any money, and nuisance tenants were almost impossible to remove.
As a result, properties fell into poor condition, landlords left the sector in huge numbers, and the supply of homes for rent collapsed. Trust in the rental market was at an all time low and that reputation seems to have stuck.
The Introduction of Assured Shorthold Tenancies
In an attempt to fix it, we got the The 1988 Act - which changed everything.
AST’s (Assured Shorthold Tenancies) were introduced, regulations were loosened, and landlords once again had confidence to invest in rental properties.
The private rental market grew, property standards improved, and tenants had more choice… which in turn kept rents competitive.
The Situation Today
Over the last decade, however, we’ve seen a steady drip feed of changes making it harder, more expensive, and less appealing to be a landlord.
These reforms are often presented as improving conditions for tenants, but the risk is that we drive landlords out of the sector once again!
If this happens, we could see a familiar pattern:
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A shortage of rental properties.
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Higher rents due to reduced supply.
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Falling property standards, as landlords have fewer resources to reinvest.
Why a Thriving Private Rental Sector Matters
In our opinion, the best way to improve standards and keep rents under control is to maintain a strong, thriving private rental sector.
When there’s plenty of choice, tenants benefit and landlords are motivated to keep their properties in good condition.
Restricting landlords too heavily risks tipping the balance the wrong way.
The straightforward truth is this: if landlords can’t operate sustainably, they won’t rent out their properties. And without them, the system fails for everyone.
We’re already seeing landlords look to leave the sector in droves with the new reform and regulations proposed.