Labour’s manifesto is still perhaps the best indicator of their upcoming plans, so here are key take-aways which we are likely to see headlines about:
- 1.5 million new homes – focusing on Housing Association and affordable homes.
- Mortgage guarantee scheme for first time buyers.
- Increase in Stamp Duty for overseas buyers.
- Extend Awaab’s law to cover the Private Rental Sector – will require landlords to investigate and fix reported health hazards within specified timeframes.
- Abolish Section 21 – either an amended renters Reform-type bill or a shortened bill focusing purely on S21 to be pushed through quickly.
Specifically for landlords, the most salient points will be 4 and 5. For point 4, it’s likely those landlords who already respond to potential hazards/major issues in a timely manner will have less to worry about than those that don’t. Point 5’s abolishing Section 21 doesn’t come as a surprise and will require legislation to be passed which will take quite a number of months. Angela Raynor also pointedly referenced during the election campaign that courts would need to be in a position to handle the change of legislation and a potential influx of cases, which may have an impact on timescales.
For the time being, it would seem prudent for landlords to sit tight and await the further detail that will come through in due course. After all, if the new Labour government hits landlords too hard, then more will sell up and leave the market leading to an even lower supply and ever higher rents.
