With the victory for Labour now over a week behind us, what should landlords expect from the change in government?
According to Allison Thompson (pictured), National Lettings Managing Director at Leaders, says: “Labour’s victory in the general election marks a significant turning point for the private rented sector. With their ambitious plans for housing reform, it is crucial that the new government addresses the pressing issues facing both landlords and tenants.”
The good news for landlords is that Labour acknowledges the significance of new housing, pledging to construct 1.5 million homes over the next five years. They also recognise the urgent need for additional council and social housing, the shortage of which is increasing the pressure on the private rental sector (PRS).
According to our recent Lettings Survey, 41% of landlords and 32% of tenants cited this shortage as one of the top three factors driving up demand and, consequently, rents. If you haven’t got your copy of our free lettings report, download it here.
It is expected the new government may favour tenants over landlords. The most impactful commitment from their manifesto for landlords is the introduction of a renters' charter. This charter is Labour's alternative to the Conservative’s Renters (Reform) Bill, which did not complete its passage through Parliament before the election was called.
Proposals in the renters’ charter include:
• Ending section 21 ‘no-fault’ evictions
• Ending automatic eviction for rent arrears
• Introducing a four-month notice period for landlords
• Giving renters the right to have pets
• Allowing tenants to make reasonable alterations to a property
• Introducing a mandatory National Landlords Register
• The introduction of the Decent Homes Standard for the PRS
• Stabilising rents by scrapping rent review clauses in tenancy agreements
Ideally, we hope the new government will revive the Renters' (Reform) Bill in the form it was in just before the election announcement, allowing for swifter progress.
Additionally, with Labour's strong commitment to a 'green' agenda and their pledge to invest £6.6 billion over the next five years into the Warm Homes Plan, rental properties may soon be required to achieve a minimum EPC rating of C.
From our perspective, good landlords have little to fear from any of the changes mentioned above. If the new government can stabilise the economy, it will support the property market, making renting easier and less volatile.
If you would like to discuss any of the policies Labour has revealed so far, feel free to contact your nearest Leaders branch. Our lettings experts are always here to help.
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