As a new Labor government takes up residence in Downing Street, all eyes are on Keir Starmer to see what his first big change will be as new Prime Minister.
James Ginley, director of technical research, e.surv
Private landlords are one group of people likely to receive a lot of attention following the party’s promise to “immediately” ban no-fault evictions on their first day in power in June.
The move was announced as part of plans to reform England’s private rental sector, along with other measures such as new legal protections for tenants to end the “rent wars” and a pledge to crack down on “unscrupulous landlords”. The Tenant Reform Bill was first proposed by Theresa May six years ago, when she was Prime Minister, and included plans to ban no-fault evictions. However, it was the one that sidelined it in the run-up to the general election that left tenants feeling “abandoned” by the then government.
Labor is taking strong action when it comes to improving the rights of private tenants and has put in place a number of plans aimed at giving tenants more power back, such as the ability to challenge unreasonable rent increases, the introduction of a cap on the amount of rent that can be paid in advance by tenants, and the introduction of new energy efficiency standards for rental properties by 2030.
The party also plans to expand the Awaab Law, which will require social housing landlords to adhere to strict time limits to tackle dangerous hazards such as damp and mold, following the death of two-year-old Awaab Ishak in 2020, if as a result of long-term exposure to mold in residential construction. his house.
On the tax issue, Labor has said it has no plans to increase income and corporation tax rates. However, landlords are being warned to watch out for a possible increase in capital gains tax rates as the party will look to increase rates. money from elsewhere.
Landlords are already feeling somewhat uncertain about the future, as high interest rates and a change in taxes all make it a less attractive income option.
In May, three in ten landlords said they plan to reduce the number of properties they have, which in itself could threaten the rental market.
It is no understatement to say that the private rental sector (PRS) has undergone significant stresses over the past decade, mainly in the form of regulatory and tax reforms. We have yet to see how the green agenda will play out for the PRS, but in reality it will still be a requirement to reach net zero by 2050. But there are undoubtedly more changes and controls on the way. The condition and value of the property (and the resulting value of the rental business) will continue to challenge investors.
For now, we have to wait until the new parliament starts on July 17, 2024. The King’s Speech will outline the key policies and legislation for the coming months, and this is when we need to know more about the proposals that have been put forward. how quickly they will come into play.
James Ginley, director of technical research, e.surv