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 PTL Lettings 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 Peterborough
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 Does a Labour Government Mean for Landlords: What is the Vision for the Rental Market?
Sir Keir Starmer emphasized ‘change’ during his election campaign and with a strong majority, Labour is now poised to implement its manifesto pledges, particularly those affecting the private rental sector and landlord taxation.
Labour’s Key Promises:
Abolish Section 21 Evictions: Labour plans to ban Section 21 (no-fault) evictions immediately.
Tenant Protections: Empowering tenants to challenge unreasonable rent increases and ban rental bidding wars (details on this are still pending).
Rent Caps: Capping the amount of rent that can be paid upfront.
Awaab’s Law: Extending 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: Introducing 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.
Landlords and Lettings: Adapting to Changing Regulations
Landlords are still navigating a period of significant change. In The Kings Speech on Wednesday 17th July, The King announced that the Government would introduce legislation to “give greater rights and protections” to those renting – including “ending no-fault evictions”, with draft legislation published on leasehold and commonhold reform.
In a further statement from Downing Street, the Government said: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions…The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”
Key Dates
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.
Tips for Landlords:
Stay informed: It’s crucial landlords keep up-to-date with changes in regulations and legislation by following resources like the National Landlords Association (NLA). If in any doubt speak with a member of our lettings and property management team at PTL Lettings on 01733 555183.
Consider tenant retention rather than rent increases: A reliable tenant who takes good care of your property can be more valuable than a small increase in rent. Building a positive relationship with your tenants can lead to long-term stability and fewer void periods.
Maintain your property: Regular upkeep ensures your investment remains attractive to tenants and minimises the risk of costly repairs later.
Click to read:
A Guide To Purchasing A Buy-To-Let Property
Becoming A Landlord In Peterborough
8 Things UK Landlords Should Know
Rental Property Management in Peterborough For landlords
At PTL Lettings we are your local experts for property management in Peterborough. If you need expert letting agent or property management services or advice, our experienced team can help. Contact us today on 01733 555183 or email info@ptl-lettings.co.uk.
