When reading the renter and consumer press, one can sometimes see hostility towards landlords, and in fact some people seem to think that landlords should be eliminated altogether.
But landlords, some landlords are necessary.
Why do you need a landlord?
1. Not everyone wants to own their own home
Gone are the days of joining a job at 16 and retiring from the same company some 50 years later with a chiming presentation clock (or something similar).
People tend to change jobs frequently, which often means moving to a new place. You may not want to go through the hassle of buying a house or apartment if you know you're only going to live there for a limited period of time.
Employees may be temporarily transferred or seconded to another company or branch of their own company, and they will need a place to live during that time, maybe only for a few months.
Plus, owning your own home comes with responsibilities. You'll need to make regular repairs and upgrades, and some people might not like the hassle. It's much easier to live in a well-maintained rental property.
2. I need rental housing for my students
Many students live in specially built student accommodation, but not all do – many students rent a house with friends for a year.
It is important that there is enough accommodation for students. However, in some areas, students struggle to find accommodation close to their university. In some cases, this means that students are unable to study at their chosen university.
3. Social housing is not always adequate
We all agree that we need more council housing, after so many homes lost to Right to Buy, and it looks like a Labour government would finally get new council housing built.
But public housing isn't for everyone. It is mainly needed by low-income families, but some public housing will also be provided to single people in poverty.
However, it is not suitable for businessmen or students looking for accommodation while relocating for work.
Landlords and the private rented sector are therefore vital to a healthy economy. Furthermore:
4. The private rented sector contributes billions of dollars to the economy
A recent report estimated that small and medium sized landlords and businesses in Wales contribute £45 billion to the UK economy and support around 390,000 jobs.
If the private rented sector were to shrink significantly, there could be serious implications.
Richard Rowntree, Managing Director of Mortgages at Paragon Bank
As the report highlights, landlords make a significant contribution to the economy and job creation directly, but also by facilitating workforce mobility: PRS has the highest proportion of employed tenants compared to other forms of ownership, providing economic mobility and enabling workers and businesses to adapt quickly to changes in demand.
James Bailey, UK Housing Leader, PwC UK
Of the estimated 4.8 million properties in the private rented sector in England and Wales, around 80% are provided by landlords who own fewer than 15 properties. This market segment is estimated to be worth £45 billion to the wider economy each year, a size that is testament to the importance of the sector to the wider economy.
5. It's a way for middle-class and working-class people to create wealth.
Many people seem to assume that most landowners are “upper class” and wealthy. However, while this is true in some cases (such as the Duke of Westminster), more often than not, landowners tend to be ordinary people. For example:
People who inherited real estate and decided to keep it and rent it out Couples who each owned real estate but now live together in one property and rent out the other People who purchased a “rental property” as an investment to support their family or retirement
Most of these provide decent housing and take good care of their residents and should not be confused with the bad and criminal sectors that we are looking at in this post series.
Just because there are bad or criminal landlords (and, incidentally, the number of such landlords is increasing due to chronically poor enforcement of housing standards), doesn't mean that all landlords are like that.
And finally, a message to the government
There is likely to be a Labour government in place after the Fourth of July and they have promised to abolish no-fault evictions and raise standards.
This would be a good thing if landlords could still get their property back for legitimate reasons and raising standards meant getting rid of bad and criminal landlords rather than good ones.
For the reasons mentioned above, keep in mind that private landlords are still needed and their contribution to the economy cannot be overlooked.
Good landlords should be encouraged. If strict laws force them out, it could create a housing crisis and have a negative impact on the economy.
So, please keep this in mind and be careful when drafting your bill.