Landlords have congratulated Labour on its landslide victory but warned that too much new red tape will make the housing shortage within the private rented sector even worse.
The comments have been made by Ben Beadle (pictured), Chief Executive of the NRLA, who has congratulated Labour, which is likely to government via a 176-seat majority in parliament.
“The party’s manifesto committed to fundamental reforms to the private rented sector. This includes ending section 21, ‘no explanation’ repossessions.
“We stand ready to work constructively with the new government to ensure changes are fair and workable for tenants and responsible landlords and are sustainable for the years to come.
“It is vital however that reform does not make worse an already chronic shortage of rental properties to meet demand.”
But others within the sector are more worried by a likely Labour housing policy blitz, which is likely to be far more ‘pro tenant’ that the Tories.
Paul Shamplina (pictured), founder of Landlord Action, says there will be ‘significant concern’ within the landlord community about the future of their properties and tenancies.
“Although Labour pledged to scrap Section 21 from day one, recent statements by Labour’s deputy leader, Angela Rayner, on LBC Radio, admitted that the practicalities of this promise are far more complex, as we already know.
“An immediate ban on Section 21 evictions is not feasible without first addressing the current inefficiencies within the court system.
“Rayner’s acknowledgment of this highlights the need for a balanced approach that considers both the rights of renters and the practicalities faced by landlords.
“Nevertheless, given Labour's pledge, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months.
“Landlords are likely to act pre-emptively to protect their interests before any legislative changes take effect.
“The primary concern for landlords is that without the ability to use Section 21, they might face significant challenges in managing problematic tenancies effectively.
“The uncertainty surrounding the timing and implementation of these changes is likely to drive more landlords to take action now, rather than risk being unable to address issues swiftly in the future.
“While the intention behind scrapping Section 21 is to protect tenants from unfair evictions, it’s crucial that the transition is handled carefully. This will help avoid unintended consequences that could reduce the availability of rental properties and ultimately harm both landlords and tenants."
"With Labour planning to build 300,000 homes annually and reform compulsory land purchases for fairer compensation, the landscape is set to change," says Simon Zutshi (pictured)of Property Investors Network.
"Coupled with proposed property affordability regulations, these changes could reshape the housing market landscape, impacting both demand and pricing."
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