1. Make it less risky to build and sell affordable homes

One of the biggest brakes on new housing is developer risk. Builders fear that if families do not buy quickly, they will be left with unsold stock. Negative sentiment around ‘being a landlord’ with higher taxes and more regulations resulting in many exiting the market – makes developers cautious about there being enough landlords (or appetite) to pick up surplus stock.

Yet most private landlords are small, efficient businesses. They buy modest homes, keep them occupied and offer flexibility and choice that the public sector cannot match, often at a higher standard than social housing.

If policy clearly backed responsible landlords, developers would know there was a reliable second buyer profile for new stock. That unlocks more building, especially of low cost homes. More supply means more choice for tenants and more opportunities for first time buyers to step onto the ladder (and more value for both).

2. Reward responsible landlords, not just the state and big corporations

The Renters Rights Act will give tenants stronger protections and raise energy and safety standards. With that framework in place, the answer is not simply to pour money into council housing and large build-to-rent schemes.

More public housing can help, and institutional investors can deliver at scale, but both come with trade offs. Public provision is often slow and expensive. Big corporate landlords could gradually dominate the market and weaken homeownership if they hold large blocks of homes purely for rent.

A better balance is to support well-regulated private landlords alongside social housing. Reducing tax and stamp duty surcharges and simplifying rules tilts the system back towards individual ownership. Tenants benefit from better quality, more varied homes, and more households can move from renting to owning instead of feeling locked into a corporatised rental market.~

3. Fix Local Housing Allowance so families can actually rent

Local Housing Allowance was designed to help low income households rent in the private sector. It used to sit close to local market rents. After years of high inflation and limited uplifts, LHA is now well below the rents being asked in many areas.

Tenants who rely on LHA struggle to find anywhere affordable and end up on long social housing waiting lists. Many landlords feel they cannot make the numbers work and avoid this part of the market entirely.

Raising LHA so it once again bears a sensible relationship to local rents would let more families use the efficient, now heavily regulated, private rented sector. Critics worry this could push rents higher, but that risk falls if LHA reform comes alongside measures that increase supply, like support for small landlords and new build homes. More properties and more competition put a natural cap on what landlords can charge.

Why this matters for investors and homeownership

Together, these three changes create a healthier loop. Developers build because they know investors will buy. Private landlords invest because the rules are stable and fair. Tenants have better choice and security while they save for a deposit, and the public sector can focus resources on those who truly need them.

For investors, it means a clearer framework instead of constant rule changes. For policy makers, it is a way to use existing private capital to support housing goals, rather than fighting against it.

Why Find UK Property stands out

For passive investors, Find UK Property shows what good can look like in practice. Their model focuses on affordable freehold houses, fully renovated and already rented out, with net rental income from day one. Properties start at under £80,000.

The investor owns the property but rents it back to Find UK Property, who become the tenant and handle all day to day management. They deal with compliance, repairs, voids and tenant issues across a portfolio of over 2,500 homes. On average, the rent they collect from occupiers covers all costs and allows them to pay investors a contractually guaranteed income, currently around 7% net, while aiming for long term capital growth.

In practice, investors help supply good quality housing for UK families without becoming hands on landlords themselves. That fits neatly with a tighter but well functioning private rented sector that still leaves room for homeownership to grow.

Join the conversation

If you care about the future of UK housing, the role of landlords and how we protect homeownership, these three levers are worth debating: support for responsible landlords, smart use of the private rented sector and a realistic Local Housing Allowance.

Watch the full episode of Property Prognosis with Dr T to hear the full discussion, and feel free to share your thoughts, challenges and ideas on how government policy should change from here.