How will the general election affect landlords?
How will the general election affect landlords? Well, it’s safe to say this is a general election like no other.
Even if you wanted to escape the constant stream of coverage across traditional and social media, you couldn’t.
There’s a strong chance you haven’t even been able to buy a cup of coffee without being pulled into a conversation with your barista about what this election will mean for the UK in 2020 and beyond.
If you’re a landlord or property investor, or you’re thinking of investing in property in the future, you certainly should be paying attention to this election.
All of the main political parties have now outlined the policies they hope will pave the way to the front door of 10 Downing Street.
And inside those manifestos are some key proposals on housing policy.
Let’s take a look at what each party is planning when it comes to a property before we head to the polls on December 12…
How will the general election affect landlords? Conservative Party housing policy
There’s no doubt the UK is facing a shortage of homes.
The Conservatives, in their manifesto, have pledged to continue their policy of building 300,000 more homes in the UK by 2025.
More specifically affecting landlords, the Tories have confirmed their pledge to abolish no-fault evictions, which would see the traditional section 21 notice bite the dust.
As well as that, the Conservatives have said they will amend deposit regulations.
That would see a tenant lodge a ‘lifetime’ deposit that travels with them when they move to a new rental property.
This, of course, would be welcomed by tenants, who often find themselves having to come up with a new deposit while waiting for an existing one to be returned.
For landlords, it could mean more red tape to cut through when it comes to deposit deductions.
But professional investors should also consider any additional protection afforded to tenants as a positive step.
How will the general election affect landlords? Labour Party housing policy
Unsurprisingly given Labour’s ‘For the Many, not the Few’ strapline, much of Jeremy Corbyn’s policy on property revolves around the council and social housing.
The party is pledging in its manifesto to build an additional 150,000 council and social housing properties per year.
In terms of landlords, Labour, like the Conservative Party, is focusing on tenant rights.
The party has outlined policies on open-ended tenancies, a government-backed renters’ union and abolishing current Right to Rent immigration checks.
Labour has also included a new ‘Property MOT’ policy in the party’s manifesto.
This would see landlords required to carry out an annual inspection on their rental properties and fines or rent repayment orders issued to those letting sub-standard accommodation.
As well as those plans, Labour also proposes to introduce rent caps at the rate of inflation for private rented properties.
How will the general election affect landlords? Liberal Democrats housing policy
The Lib Dems have also focused heavily on tenant rights in their general election 2019 manifesto.
The party has outlined plans to introduce government-backed deposit loans for first-time renters aged under 30.
And in another huge step, they’d also bring in a mandatory licensing programme for all private landlords and not just those letting Houses in Multiple Occupation (HMOs).
They also propose to further tighten Minimum Energy Efficiency (MEES) standards for private rented properties, which could have a major impact on landlords whose properties are only just above the current required ‘E’ rating.
The other parties’ plans for housing in the UK
The Green Party is pledging to:
- Ensure every home in the UK is insulated properly
- Build 100,000 new council homes per year
The Brexit Party says it will:
- Simplify planning rules for brownfield sites
The Scottish National Party has said it will:
- Restore housing support for 18-to-21-year-olds
- Encourage councils and property owners in rural areas to make use of empty homes by letting or selling them