Concerns were raised at the event which took place on 25 January at Yorkshire Building Society’s offices in central Leeds. The event was attended by key broker partners, along with the managing director of the National Association of Commercial Finance Brokers (NACFB), Norman Chambers, and members of the senior leadership team at YBS Commercial.
The discussion focussed heavily on concerns over current government policy, which attendees saw as penalising landlords.
These include potential changes to regulations around Energy Performance Certificates (EPCs), as well as the abolition of Section 21 - the right to enact ‘no fault’ evictions, and rent caps in Scotland, meaning that landlords could, effectively, lose control of what happens to their properties - a range of factors which may lead to a market exodus if many choose to opt-out.
The number of households privately renting in England reached 4.61 million in 2022, suggesting a potentially, significant impact should this happen.
All of this is compounded at present by the impact of a higher interest rate environment on affordability, rental yields and landlords’ ability to release capital for further investments.
Attendees largely made up of directors and owners from smaller broker firms in Yorkshire and the surrounding region, expressed fears about the impact these ongoing changes are having on the buy-to-let market – and what it means for the future of the sector.
Tom Simpson, managing director for YBS Commercial Mortgages, who hosted the event, said: “As an industry, it seems clear that there’s a collective sense of worry about the long-term effect of these changes. A sustainable private rental sector is vital in terms of providing quality housing for people across the UK.
“Landlords of all kinds provide a vital service to the property market, yet with measures over recent years, many landlords - both large and small scale - may find increasingly that they have lost control of their own assets and that the numbers just don’t add up anymore.”
Norman Chambers, managing director for the NACFB, said: “The Government needs to take these concerns seriously and look at ways to support and encourage – not hinder – landlords in the future.
“This could include more consultation with trade associations like ourselves in advance, to better understand the implications of future policies recommended by the government which affect landlords.”
