Landlords Corner – Landlords Waiting On General Election Outcome
In our monthly landlord’s corner section, we like to look ahead, providing landlords with insight into possible changes to the way they run their business. We believe it is vital that landlords are fully prepared in managing their business, and we are always on hand to offer guidance and advice, be it general or tailored to your needs.
This month though, the task is not quite as simple. The General Election taking place on Thursday 4th July means no one is really sure what will happen for the rest of the year. The Labour Party is tipped to seize power in the election, and this could change circumstances for many landlords across the country. Then again, there have been election upsets before, which means it is best to hold off on all essential decisions, at least for a short while.
Will the outcome of the election impact what you do next?
If you are awaiting the outcome of the election before committing to portfolio changes, you are not alone. A study commissioned by Zero Deposit, suggests a Labour government will not spark crisis in the letting industry. Only 19% of respondents said they’d reduce their portfolio size if Labour take power, with 78% saying they won’t make any changes.
Around 10% of landlords said they’ll reduce their portfolio size if the Conservative government remains in power. This might suggest landlords are more confident with the current government, but the reality is, any change is likely to cause more disruption. Historically, landlords have had it tougher under Labour, but the Labour party of today is far from the one older landlords recognise.
Will the Rental Reform Bill happen?
A lot of time, effort and planning has focused on the Rental Reform Bill, and the potential ban on Section 21 evictions. However, that failed to make it through Parliament before the General Election process began. According to the Zero Deposit survey, 27% of respondents do not believe the Bill will come into effect.
Sam Reynolds, CEO of Zero Deposit commented: “Traditionally the Conservatives may have been viewed as the party of choice for landlords, but we’ve seen a string of legislative changes in recent years that may suggest otherwise. Despite a squeeze on profitability, the majority of landlords have chosen to maintain the size of their portfolio and given the challenges already faced, it’s hardly surprising that they remain largely unfazed by a potential change of political party at the forthcoming election.”
Sam continued by saying: “The election itself has inadvertently shelved the implementation of the most significant rental sector changes in many years and while it remains to be seen just what will come of the Rental Reform Bill, most landlords will be understandably lacking confidence that either party will drive any real improvement in the sector. What is interesting to see, is that while Labour have committed to implementing a ban on Section 21 evictions, it isn’t the biggest concern amongst landlords when it comes to potential changes to the sector under the party.”
If Labour take power, we think it’s highly likely the Bill will be resurrected and brought in, as quickly as possible.
Whatever the outcome is from the General Election, you need guidance from a local letting agent who knows the area, and the business. We’ve seen many changes in power, and we know what landlords and tenants are looking for. We’ll be here to support you no matter who is in power, so get in touch for all your letting sector needs.
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