What Should Landlords Expect Post Election?
9th January 2020
9th January 2020
While Brexit was the leading issue for many people in the build-up to the General Election, housing matters to many people. All the leading parties have numerous housing elements in their manifesto, and a lot of promises have been made. The Conservative Government now has a sizable majority, and there looks to be some stability for the housing market.
Many people view this as a positive thing, and there is hope the market will benefit from stability. However, while it is natural for people to focus on the buying and selling of property, what about the rental market? The letting industry is hugely significant in the United Kingdom economy, and letting matters affect a considerable number of people on a daily basis. It is therefore not unreasonable to ask what should landlords expect post-election.
If the Labour Party won the election, it is likely there would have been significant changes to the rental industry. There would have been a considerable expansion of tenant’s rights, and landlords’ rights to exclude tenants on housing benefits would have been removed. There would also have been changes to Capital Gains Tax, bringing it in line with income tax.
Of course, with the Conservatives winning in such an emphatic manner, these policies will not come to the fore. However, the Government aims to make renting more tenant-friendly, and they have announced plans to remove ‘no-fault’ Section 21s.
It is likely the Section 8 procedure will be strengthened, and these will only operate in circumstances where a tenancy breach has occurred. This will provide landlords with the opportunity to take a tenant to court and argue their point.
It is also likely that a lifetime deposit system will be introduced. This system would mean that deposits can be transferred from tenancy to tenancy, which helps tenants. However, many landlords are yet to be convinced by this measure, and there are concerns over landlords not receiving sufficient support when disputes arise. Clearly, more work needs to be carried out regarding what happens if a dispute arises over the deposit.
The Conservative Government claims to provide hope for first-time buyers. If these plans come to fruition, it is natural that demand for rented property will fall, as tenants can afford to buy their own property. However, there are concerns about people affording to buy a home, and most industry observers believe there will be significant demand for a rental property for many years to come.
While many industry experts have hunches or ideas about what will happen in 2020, no one is too sure for definite. It is best to wait and see and to continue to evaluate the market as we move throughout the year.
If you are looking for guidance on being a landlord in Northampton, or you want to provide tenants with the best standard of service, we can help. We are pleased to say we have assisted many Northampton landlords, and if you contact Merrys Estate Agents, we will be happy to help you.