Redefining 'working people': Why landlords are vital to the rental market's survival

25 October 2024, 17:35

The Prime Minister’s suggestion that landlords do not fit the Government’s definition of ‘working people’ will be news to many of our members.

Contrary to what critics of private landlords would have you believe the average landlord is not the stereotypical ‘property tycoon’ they are portrayed as in some quarters.

In fact, the increased costs many have faced over recent years due to inflation and higher interest rates have made it tougher for them to stay in the market.

A significant number have exited the sector over recent months, many of whom are likely to have had portfolios consisting of only one or two properties.

But don’t take my word for it. By way of proof, the English Private Landlords Survey reveals that 30 per cent of landlords work full-time, while a further 10 per cent work on a part-time basis. 35 per cent of landlords are retired, many of whom use rental income from their buy-to-let property for their pension.

The shortage of available properties across all housing tenures means that private landlords perform a valuable service by letting properties to those who need them. Without a healthy private rented sector, the average tenant’s choice of property is significantly narrowed.

James debates a landlord who believes she 'already pays enough tax'

However, rather than get bogged down in debate about whether landlords are ‘working people’ or not, the Government should focus on dealing with the myriad issues which prevent the development of a thriving rental market.

In short, what we need is for the Government to take clear steps towards the creation of an environment which encourages, rather than deters, investment in the homes people need.

With recent Rightmove data indicating that there are a record number of tenant enquiries for each available rental property, we need pro-growth solutions that will help private landlords let more properties to tenants desperately looking for high-quality accommodation.

Separately, we need to ensure the Renters’ Rights Bill currently making its way through parliament is implemented within a realistic timeframe. We want a Bill which is fair to all parties, and which allows the private rented sector to play its part in resolving the supply crisis.

That means bold pro-investment policies, rather than further debate about which category of ‘worker’ or ‘non-worker’ landlords fit into.

Ben Beadle is the Chief Executive of the National Residential Landlord Association.

LBC Views provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email views@lbc.co.uk