With over a million property sales already recorded this year, the market is clearly moving at a fair pace. Yet beneath that, something else is stirring. The cost of getting onto the property ladder keeps rising, and conveyancing has become slower and more complicated. For many would-be buyers, the dream of ownership feels out of reach. Renting, at least for now, seems the easier route.

At the same time, some landlords are uneasy. That uncertainty adds to the already unsettled feel of the wider market. Mix in growing pressure to meet rising demand from immigration, along with a reluctance among some landlords to house asylum seekers over local tenants, and the picture becomes even more complex.

The Renters’ Rights Bill has only added to the tension. Set to overhaul how tenancies work, it’s already changing how landlords think and act before it even becomes law. The rules are tightening, the paperwork’s growing, and many landlords are quietly wondering if it’s still worth the effort.

A recent report by Property118 suggests that quite a few have already made their minds up. They’re moving away from traditional private rentals and leasing properties to contractors working with the Home Office to house asylum seekers. On the face of it, it looks like a sensible business move. Guaranteed rent, no void periods, and less hassle collecting payments. For landlords worried about compliance or new regulations, that sort of stability is appealing.

These contracts are often managed by large firms such as Serco, who take on the lease directly. The contractor becomes the tenant, and the landlord steps back from the day-to-day management. It all sounds simple enough, yet there’s a catch.

Paul Shamplina of Landlord Action and others have warned that these deals aren’t without risk. The rent may be reliable, but the property condition isn’t guaranteed. Some landlords have been stung with repair bills once their homes were handed back. Others have found unexpected responsibilities tucked into the small print, from maintenance to managing anti-social behaviour.

There’s also the question of how these arrangements are viewed legally. Homes used for asylum housing aren’t always classed as standard buy-to-lets. That can raise red flags with lenders, insurers, or local authorities. Without proper permissions or consents, a landlord could easily find themselves uninsured or in breach of their mortgage terms.

Even so, the attraction is clear. Many landlords are tired of licensing schemes, proposed rent caps, and the constant stream of compliance updates. A fixed, government-backed income sounds far more secure. As Wendy Whittaker-Large from the HMO Action Group notes, more landlords are choosing stability over growth. They’d rather have predictability than flexibility, even if it means stepping away from private renting altogether.

The question is what happens next. If more landlords switch to asylum housing contracts, the supply of private rental homes will shrink. Local authorities already face huge demand from renters and families, and losing more stock could push the situation to breaking point.

Every change brings trade-offs. Some landlords see asylum accommodation as a practical way to stay afloat and do some good at the same time. Others are cautious, worried about the social and reputational risks. Whatever side they’re on, one thing is clear – the Renters’ Rights Bill is reshaping behaviour long before it reaches the statute books.

On Thursday 23rd October at 10am, Property Quorum will be taking a closer look at this growing shift. Gareth Wax will be in the chair, joined by Juliet Baboolal, Chris Gilsenan and myself, Hamish McLay, to explore what this means for landlords, tenants, and the housing market as a whole.

Watch live on YouTube at https://www.youtube.com/@SpillingTheProper-Tea

For content enquiries: This email address is being protected from spambots. You need JavaScript enabled to view it.
For podcast/media info: This email address is being protected from spambots. You need JavaScript enabled to view it.