With the general election less than two weeks away now and most details from their respective manifestos available, in this article we take a dive into where each party stands on the Private Rented Sector.
At roughly 10million at the last count, depending on which source of statistics you choose, renters make up a little under 25% of the 41million or so registered voters in the UK. It stands to reason therefore, that ‘rental reforms’ of one sort or another should feature heavily in voters’ decisions. Naturally, landlords make up a smaller proportion of the electorate at approximately 3million. Most of these (roughly 90%) own and let their properties in their own name, rather than through a limited company and so have borne the brunt of punitive tax changes over recent years.
Despite it being an important national issue and possibly decision making for many voters, not all parties make their positions clear in their manifestos.
Here are the main points that can be discerned from the manifestos of the major parties – Conservative, Green, Labour, Liberal Democrats and Reform – on several of the key issues for the PRS:
Abolition of Sec 21.
On the abolition of Section 21 – so-called ‘no fault’ eviction – the parties are reasonably aligned. All but the Reform party have pledged to abolish this.
Reversal of Sec 24 (tax regime).
Again, there is broad alignment amongst the parties with only the Reform party proposing to reverse this legislation.
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Rent Controls.
Only the Green party are openly proposing rent controls (rents set at 35% median net income). Labour are not being completely clear on their position, fudging the issue by proposing that tenants be able to ‘challenge unreasonable rent increases’ (which is actually already possible within existing legislation). Reform and Conservatives are opposed to rent controls and Lib. Dems. do not state their position on the subject.
Energy Performance: EPC C.
Three of the parties support bringing in lower EPC targets: Labour by 2030 (no level indicated), Lib Dems EPC C by 2028 and Greens merely stating their support of this but not being specific. Conservatives are opposed to any changes and the Reform party have not made their position clear.
Abolition of Fix Term Tenancies.
Only two parties openly support the abolition of fixed term tenancies in their manifestos: the Conservatives and the Green party. The Lib. Dems. are proposing introducing a 3-year fixed term. Labour has no position on the subject. Only the Reform Party have specifically said they will not abolish fixed term tenancies.
Compulsory Licensing and Landlord Register.
On the two often talked about and linked subjects of licensing and/or landlord register, the parties are aligned in their positions:
The Conservatives are the only party clearly and openly opposed to both proposals. Instead, they propose what they are referring to as a ‘PRS Database’. Two of the remaining four parties – Lib. Dems. and the Green Party – support both proposals. The remaining two parties – Labour and Reform – make no statement on the subjects in either their manifestos.
Although of obvious critical importance to the country, clear policy around the PRS is hard to find within the manifestos of the major parties. As always, individuals will have to sift through the various commentary and decide which party best represents their own interests, and importantly, based on recent track record, which party is most trusted to deliver on their promises.
At Lifeboat Lettings we will always help and advise landlords and assist where we can.
If you would like some help with any of the subjects covered above or anything else relating to properties or lettings, please email contact@lifeboatlettings.com.
