According to The Daily Telegraph, New Zealand has rolled back its ban on no-fault evictions. The restriction, brought in under Jacinda Ardern’s government in 2020, was blamed for shrinking rental supply and ultimately pushed ministers to abandon the policy.
From January, landlords have once again been allowed to end periodic tenancies without giving a specific justification, as long as tenants receive 90 days’ notice.
Landlords in New Zealand can give just 42 days’ notice if they or an immediate family member need to move into the property, and fixed-term tenancies can still end automatically once the contract expires.
Portugal eases tax burden on landlords as it is also stepping back from tougher rules, with ministers consulting on a plan to cut income tax on rental earnings to 10%.
Price Waterhouse Coopers notes that landlords currently face rates ranging from 12.5% to 48% on their overall income.
Under the new proposals, homes let at least 20% below the local market rate would be taxed at 0%, while longer leases would attract progressively lower rates, dropping to 5% for contracts lasting more than 20 years.
Sector leaders say these policy reversals highlight the consequences of driving landlords out of the market — and warn the UK could be heading in the same direction.
Despite mounting concerns, ministers are pushing ahead, with the Renters’ Rights Act due to come into force in England from May.
The legislation will abolish Section 21 ‘no-fault’ evictions, a shift that could leave landlords waiting as long as eight months to regain possession of their properties.
The pressure is already prompting more owners to exit the market. In July, former rental homes made up 22% of new listings in London, up from 15.6% a year earlier.
With supply thinning out, average asking rents in the capital have climbed to a record £2,736.
An industry spokesman told the Daily Telegraph: “This [Renters Rights] is a disaster waiting to happen.
“If landlords are already facing an almost eight-month wait to legally take possession of their homes at a time when the number of claims is falling, then what can we expect when the inevitable avalanche of claims drops post-Renters’ Rights Act?”
A campaigner for the industry said: “When you look at what New Zealand and Portugal are doing, it is hard not to ask why the UK is heading in the opposite direction.
“We seem to be doing everything possible to make landlords feel unwanted, while still expecting them to house millions of tenants.
“Unless the UK does too, we risk pushing more landlords out and making the housing shortage even worse, which will negatively impact tenants.”
A north London estate agency spokesman, said: “New Zealand offers a clear case study of what happens when policy drives private landlords away and how difficult it is to reverse the damage.”