WHAT DOES A LABOUR GOVERNMENT MEAN FOR LANDLORDS & THE RENTAL MARKET?
Barney Brander created on 9th July 2024
With the Labour Party’s recent election victory, Sir Keir Starmer steps up as the new Prime Minister, and as the new government takes shape, landlords will be keen to understand the implications for the rental market.
The team at Lets Rent Southampton Properties Ltd has put together the key topics to watch including Section 21 evictions, energy efficiency standards, and changes in landlord taxes.
Key Issues Facing Landlords in Southampton
Post-election, landlords will be closely monitoring Labour’s approach to several pressing issues in the rental market. These include:
Rising Costs: Increased mortgage rates and significant tax changes have reduced returns for many landlords.
Rental Reforms: Although plans to scrap Section 21 evictions were initially dropped, Labour intends to revive them.
Rental Housing Supply: A mismatch between rental supply and demand has led to steep rent increases in some areas.
Energy Efficiency: Previous plans to raise minimum energy efficiency standards were scrapped, but Labour aims to introduce new measures by 2030.
What is Labour’s Vision for the Rental Market?
Abolish Section 21 Evictions: Labour plans to ban Section 21 (no-fault) evictions immediately.
Tenant Protections: Empower tenants to challenge unreasonable rent increases and ban rental bidding wars (details on this are still pending).
Rent Caps: Cap the amount of rent that can be paid upfront.
Awaab’s Law: Extend this law, which mandates rectifying hazards like mould in social housing to also include private rentals. This will require landlords to fix any health hazards within a specified timeframe.
Energy Efficiency Standards: Introduce new standards by 2030, though the specific EPC rating required is yet to be determined, it is likely to be a C rating.
Gas Boilers: Remove the mandate to replace gas boilers by 2030. No-one will be forced to remove gas boilers as part of the energy efficiency standards.
Taxation Under Labour
Labour has pledged not to raise the basic, higher, or additional income tax rates. Corporation tax will stay at 25%, and VAT and National Insurance rates will remain unchanged.
However, landlords should look out for potential increases in capital gains tax rates as Labour seeks alternative funding sources.
What’s Next for Rental Reforms?
The Conservative government had proposed the Renters’ Reform Bill, which aimed to abolish Section 21 evictions and end fixed-term tenancies. Although the bill was dropped before the election, Labour is committed to scrapping Section 21 evictions immediately, and more details are expected soon.
Key Dates for Landlords
After moving into 10 Downing Street, Sir Keir Starmer will form his cabinet. Critical positions for landlords include the Chancellor of the Exchequer, the Secretary of State for Levelling Up, Housing and Communities, and the Secretary of State for Business and Trade.
Parliament Resumes: July 9, 2024
King’s Speech: July 17, 2024, outlining the government’s policies and new legislation.
Labour Party Conference: September 22-25, 2024, which will indicate the government’s priorities and Starmer’s early performance.
Potential Autumn Budget: October or November 2024, as Labour plans to hold one budget annually instead of alternating spring and autumn budgets.
Rental Property Management in Southampton For landlords
At Lets Rent Southampton Properties Ltd we are your local property management experts in Southampton. If you need expert letting agent or property management services or advice, our experienced team can help. Call us today on 02380434448 or email barney@letsrentsouthampton.co.uk.
Barney was born in London but brought up locally so has an expert knowledge of the area. He has been in the industry for 19 years and is passionate about all things property. If you need any advice on selling, letting or investing in Southampton then he is your man. He lives locally with wife Anna and 3 children Milo, Betsy & Cora who tend to keep him rather busy! In his ‘Free’ time you’re likely to find him on the golf course or bemoaning his decision to renew his season ticket at St.Mary’s.
My partner and I rented a flat with this agency and had a really great experience, especially because of Sam, who throughout the process of renting our new flat, was friendly, professional, and genuinely helpful. He always responded quickly to our emails and calls, kept us updated, and never forgot ...
Lauren Deeth-Kelt
The team have been amazing particularly Sarah who has been so responsive and helpful getting everything organised for me. Maintenance and repairs have been quick. Honestly the best estate agents I've used.
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They were the agents for my rental flat and they are always helpful to deal with. Dealing with Sam on the phone always helped me out and was able to reach solutions quickly. I can see why they are a leading agent in the area!
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Had the best viewings with Sam , answered all our questions and explained everything we needed
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Consistently helpful throughout the process of sorting out the renting agreement, deposit and key collection,
Sam was Especially quick to respond to all my queries
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Sam was brilliant and helped the whole way through
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Very helpful and understanding. Friendly and made the move as stress free as possible. Thank you Sarah as well for being patient with everything. Definitely recommend to anyone thinking of moving
