Housing Minister Matthew Pennycook has dismissed fears that tighter regulations will force small landlords to leave the rental market, insisting that well-designed rules can benefit both tenants and landlords.
The debate came after Conservative MP Edward Leigh raised concerns that increasing regulatory requirements could drive small-scale landlords out of the private rented sector, reducing the availability of housing for those who rely on rental properties. Leigh argued that fewer landlords could exacerbate rent inflation and limit housing options for vulnerable tenants.
Pennycook responded by emphasising that “not all regulation is bad” and highlighted the Renters’ Rights Act as a key tool in making rental arrangements clearer for both landlords and tenants. Under this legislation, landlords now have simpler, more transparent grounds for possession, which helps them manage their properties fairly while remaining compliant with the law.
During oral questions in the Housing, Communities and Local Government session, Leigh asked whether new rules might inadvertently harm tenants by reducing supply. He pointed out that rent inflation is often driven by high demand and a shortage of homes, and warned that over-regulation could discourage landlords, particularly those managing smaller portfolios.
The Minister acknowledged these concerns but stressed that the government’s approach balances the need for regulation with the need to maintain a viable rental market. He noted that build-to-rent developments will continue to play an important role in increasing housing supply in the coming years, providing more options for tenants while supporting landlords’ investments.
Pennycook stated that the Renters’ Rights Act improves clarity in possession procedures, making it easier for landlords to recover properties when necessary. At the same time, the legislation gives tenants a legal avenue to challenge unfair treatment or unreasonable rent increases, which strengthens protections for renters across the country.
According to the Minister, fears that all regulations will negatively impact landlords are misplaced. Properly designed rules can create a fairer, more predictable rental market, reducing disputes and fostering better relationships between landlords and tenants.
The debate also touched on rent controls, with Labour MP Dan Carden welcoming the Act’s provisions for challenging rent increases. Carden warned, however, that market rents could still be used as a benchmark, potentially allowing prices to rise beyond what is affordable for many renters. He called for more robust measures, including rent control, to ensure housing remains accessible.
Pennycook firmly rejected calls for rent controls, stating that the government does not plan to introduce broader rent stabilisation measures. He explained that the Act already gives tenants the power to challenge unreasonable rent hikes at a first-tier tribunal, where independent judgments are made based on whether the increases are fair and reflect market rates.
He added that the government will continue to monitor the implementation of the Renters’ Rights Act, ensuring that it achieves its objectives without introducing unnecessary burdens on landlords. This approach, he argued, helps maintain a healthy balance between tenant protections and a sustainable rental market.
The Minister also noted the importance of the build-to-rent sector in providing high-quality rental housing. He described it as a key component of the market that can deliver additional supply while offering professional management and modern facilities, benefiting both tenants and investors.
In conclusion, Pennycook emphasised that regulation is not inherently harmful and that the government’s focus is on creating a fair and sustainable rental market. By clarifying landlords’ rights and strengthening tenant protections, the Renters’ Rights Act aims to support long-term stability in the private rented sector.
He reassured landlords that responsible investment in the sector remains viable, and that thoughtful regulation can coexist with profitable property management. The message was clear: landlords should not fear regulation, provided it is implemented sensibly and fairly.
Overall, the debate highlighted the ongoing tension between protecting tenants and supporting landlords, but Pennycook’s position suggests that regulation can be a tool for stability rather than a barrier, ensuring that the rental market continues to function effectively for all parties.
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