Landwood Group says it’s seeing a rise in the number of landlords coming to auction their properties, finding it too challenging to continue operating.

The company claims that Labour’s announcement to ‘immediately’ abolish Section 21 was intended to benefit renters, but fails to recognise the significant challenges faced by landlords. 

Regardless of this, removing the ability of a landlord to obtain possession if and when required, is likely to reduce the amount of private housing available to rent as private landlords exit the market.

With more than a third of the UK population renting Landwood claimst is crucial to consider the impact on private rental housing stock and the sustainability of those providing these homes.

A statement from the firm says: “Landlords, already grappling with skyrocketing interest rates and escalating costs that have rendered their buy-to-let investments unprofitable, now face an even tougher challenge with this new reform. It will further limit their ability to improve their property portfolios and likely drive more landlords out of the market altogether. As a result, the quality of housing for renters in need may decline even further.

“Looking ahead, landlords may implement stricter tenant vetting to avoid complex evictions and prioritise secure, long-term leases. This could make it harder for new renters to find homes and potentially drive up rents, as landlords seek to mitigate these new risks.

“As we reform the rental market, we must strike a balance that protects renters’ rights while also ensuring the sustainability and availability of private rental stock. The best way to deliver more rental stock and affordable rents is to build more houses. 

“Which is, unsurprisingly, the same answer to the question of how to make home ownership more affordable.”