Emsleys Estate Agents Logo Posted: 27th June 2024

Labour and the 2024 Election

Labour and the 2024 Election

With the UK General Election polling date moving ever closer, and the pollsters predicting a Labour Government, I thought I would look at their Private Rented Sector Policy alongside their 2024 manifesto.

One of the main features of the manifesto includes a new stance that they will ensure that privately rented homes meet a minimum standard by 2030, but have not advised what this will include.

Their policies documentation also gives case studies of poor-quality housing in the Private Rented Sector and states that not enough Landlords know their responsibilities to tenants. They have pledged to produce a “A private rented sector with decent homes for all”.

 

The documents pledges: 

  • A national register of private landlords

This is designed to assist local authorities in working with Landlords, so they are aware of their legal obligations of providing safe and habitable living accommodation. This may also ensure Landlords meet their tax obligations.

  • A new national private rented property standard

The new system will include benchmarking on current legal standards and state information on common areas including EPC ratings, property condition, repair and response time for maintenance, as well as such items as minimum legal standards on deposit protection. They have advised that it could be linked with potential incentives for those properly registered private Landlords.

  • Local Enforcement.

Labour wants to support local authorities and review the conditions through which local authorities can establish a licensing scheme. They aim to be able to influence the sector directly on areas such as property management and the quality of properties. The enforcement also aims to reduce anti-social behaviour around rented accommodation and tenants.

  • Tougher sanctions for bad landlords.

Using the register of private landlords, Labour aim to be able to use this catalogue to stop poor landlords from operating illegally. They will explore the level of penalties including sentencing guidelines and seek to stop retaliatory eviction by poor landlords.

  • Looking at other countries

Using Germany as an example, most of the Private Rented Sector homes are owned by small landlords and they are charged a lower rate of tax on their rental income. This is because property that is rented out is taxed as an investment. This means that landlords can deduct the mortgage interest, allowances for depreciation and expenses incurred on the administration and the refurbishment of a dwelling from their total taxable income. This aims to make smaller landlords, who may be less profit driven, to still rent properties competitively.

  • Warmer homes

Labour look to offer grants and low interest loans to support investment in insulation, solar panels, and low carbon heating. Their plans will involve working with banks, building societies and local authorities to achieve warmer homes across Britain.

 

So, if Labour do form the next Government, Renters Reform started by the Conservatives will be implemented at some point and include the abolition of Section 21 Notices. If they do look at the tax system and allow Landlords to rent their properties in a more tax efficient way, as in Germany, this may allow landlords a breathing space to take on board all the changes and encourage them to continue to or buy more to expand their portfolio.

As experts in all Rental and Lettings legislation, Emsleys Estate Agents are here to help all our current Landlords as well as provide initial advice to future Landlords regarding any changes in the rental rules.

The issue that still remains however is, as we all are aware, the lack of supply of good quality rental homes to satisfy the current and further needs of the country, causing pain for Landlords and Tenants alike.

Labour and the 2024 Election
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