If you’re wondering how the general election will affect the letting industry, this guide is a must – find out how each governmental party will affect rentals in 2024.
Current market issues:
Rising costs are a major concern for Landlords, this is due to higher mortgage rates and significant tax changes, which has reduced returns for many landlords.
Tenants face fierce competition when searching for a place to rent as there are low vacancy rates for properties. High competition enables landlords to maintain higher rental rates as they have a high number of applicants who are willing to pay more for a place to live.
How will the General Election 2024 affect the letting industry?
If the Conservative party win the election, these are the following changes they will make:
- Allow section 21 evictions to be scrapped – landlords would need to use the existing section 8 to evict tenants instead of a section 21.
- Introduce the decent homes standards for private rentals – private rentals must be free from serious health and safety hazards.
- Stopping discrimination against those receiving benefits or pet owners – Landlords and agents would need to look at those receive benefits the same as those working full time. You would not be able to advertise solely for private tenants.
If the labour party win the election, these are the following changes they will put in place:
- Ban no fault evictions- Landlords must have a valid reason to evict a tenant from their property otherwise a tenant cannot be evicted.
- Limiting rent increases- capping the amount a landlord can increase rent by, currently there is no cap, rent increases can happen every 12 months.
- A national register for landlords and agencies- a database where all landlords and agencies will be registered.
- Creating a code of conduct for landlords- contains specific rules for landlords to follow.
I think it’s clear that whoever comes out on top of the general election will make major changes to the letting industry. Most which will likely hit landlords in the pocket.
See you at the polling station…
