Some 46% of landlords and lettings agents said they are likely to reconsider their involvement in the sector should Section 21 be banned.
Almost half of landlords and letting agents will consider pulling out of the private rental sector to some degree as a result of government plans to end Section 21 repossessions, a survey from the Residential Landlords Association has found.
Some 46% of the 6,500 landlords and letting agents surveyed said they will re-consider their investments and portfolios.
David Smith, RLA policy director, said: “Security of tenure means nothing unless the homes to rent are there in the first place.
“With the demand for private rented housing showing no signs of slowing down it is vital that landlords are confident that they can quickly and easily get back their property in legitimate circumstances.
“Whilst the system should clearly be fair to tenants, it needs also to support and encourage good landlords.
“Our survey shows how complex it will be to ensure that the grounds on which landlords can repossess properties are both clear and comprehensive.
“This needs to be underpinned by a court system that is fit for purpose and properly resourced. At present it is neither.
“It is vital that the government’s planned reforms are carefully considered to avoid finding ourselves needing to reopen this whole issue later down the line.”
The research also found that over 40% of landlords are waiting for other planned changes by the government to become clearer before they make decisions on their ability to provide homes to rent.
The figures come just weeks after the Royal Institution of Chartered Surveyors warned of private rents increasing by an average of three per cent a year over the next five years as a result of landlords being less prepared to rent property whilst demand from prospective tenants increases.
In April, the government announced plans to end Section 21 repossessions, alongside proposals on improving the process known as Section 8, under which landlords can repossess properties on grounds such as rent arrears or anti-social behaviour.
This process requires landlords to apply and be granted permission to repossess via the courts yet official data shows that it takes over five months on average from application to repossession.
According to the survey, of those landlords with experience of such repossessions, 79% did not consider the courts to be reliable. Almost 91% of landlords supported the establishment of a special housing court, bringing together all housing disputes under a single body.
