Election 2024: What the party manifestos mean for landlords & home owners
Business
Updated Friday 5th July 2024
We now know that the Labour Party has won the General Election and has been elected to parliament. But in the build up to the General Election, housing and property policies seemed to be a key area of focus in the political party manifestos.
For landlords and holiday home owners, these policies could have significant implications on taxes, regulations and on the overall housing market landscape.
In this article, we summarised the key housing pledges from the Conservatives, Labour Party, Liberal Democrats, Green Party and Reform UK to explore how their proposed changes could impact the property market and home owners – if they were elected to parliament.
But first, a quick disclaimer. This article is provided for information purposes only and is not intended to influence any political decisions, nor do we endorse any of the parties. Our only goal is to help our clients with their insurancerequirements. We recommend doing your own research and consulting with an advisor to better understand how these manifestos could affect you.
Pass a Renters Reform Bill to deliver fairness in the property market for landlords and renters to fully abolish Section 21 ‘no fault’ evictions.
Strengthen grounds for landlords to evict private tenants guilty of anti-social behaviour.
Provide more powers to councils so that they can manage the ‘uncontrolled growth’ of holiday lets.
Introduce a two-year temporary Capital Gains Tax relief for landlords who sell to existing tenants.
No rate increases to residential stamp duty to support home owners. Make permanent the first-time buyer stamp duty threshold rise from £300k to £425k – which was introduced in 2022.
Maintain Private Residence Relief so that people’s homes are protected from Capital Gains Tax.
What might this mean for you?
There are a fair few pledges that the Conservatives proposed for landlords and even primary home owners ahead of the General Election.
The first being the proposed passing of a Renters Reform Bill where the Tories said they will deliver the court reforms to fully abolish Section 21 evictions. For landlords with several properties, this bill could impose more stringent regulations on rental agreements resulting in increased administrative duties.
On the flip side, the Tories pledged to strengthen other grounds for landlords to evict private tenants guilty of anti-social behaviour.
The Conservatives said they will ensure councils have the powers to manage the ‘uncontrolled growth’ of holiday lets which can cause ‘nuisance’ to communities. This will more than likely impact landlords operating in tourist-heavy areas such as St Ives in Cornwall where councils receive several complaints from neighbouring residents.
The phrasing of this may come across as negative to some people – perhaps with assumptions that more restrictions could be put in place to reduce their profitability. Others may see it as a positive with potential restrictions on new landlords entering the market, limiting the competition resulting in a steady income. This is presumptive and open to interpretation, and more details are needed before making any informed decisions.
The introduction of a two-year temporary Capital Gains Tax relief for landlords selling to tenants could encourage the conversion of rental properties to owned homes, benefiting landlords looking to sell while offering financial incentives by doing so.
Prevent private renters from being exploited by landlords, ‘empowering’ them to challenge unreasonable rent increases.
Extending ‘Awaab’s Law’ to private sector which requires landlords to fix reported health hazards within specified timeframes.
Increasing stamp duty paid by non-UK residents.
Build 1.5 million homes. Build a new generation of new towns, as part of a series of large-scale new communities across England.
What might this mean for you?
We now know that the Labour Party are in power. We will revisit this section at a later date to review whether their proposed policies are implemented and how they impact landlords.
The Labour Party’s stance in their manifesto was clear as they look to ‘overhaul the regulation of the private rented sector.’
Similarly with the Conservatives, Labour pledged to immediately abolish Section 21 ‘no fault’ evictions – which currently allow landlords to evict tenants without a stated reason at the end of their tenancy. Landlords would need to provide specific, valid reasons for ending tenancies which could complicate the process of regaining possession of a property.
They pledged to protect tenants from sharp rent hikes and will empower renters to challenge ‘unreasonable’ increases. For landlords, this might mean potentially stringent regulations on any rental price increases affecting rental income growth.
Named after a child who tragically died from exposure to mould in social housing, Labour said they will look to extend ‘Awwab’s Law’ to the private sector. This means landlords would have to address severe health hazards within a specified timeframe.
Stamp duty looks to be increased for non-UK residents to cool off speculative buying from abroad, limiting competition from foreign investors.
Lastly, for standard home owners and those looking to move home soon, Labour intend to build 1.5 million homes including creating a generation of ‘new towns’ across England. It’s up for interpretation whether this could impact the rental and wider housing market.
Create a national register of registered landlords.
Require landlords to upgrade energy efficiency of properties to EPC C or above by 2028.
Expand incentives for households to install solar panels, including a guaranteed fair price for electricity sold back into the grid.
Introduce ‘use it or lose it’ planning permission.
Build 380,000 homes each year across the UK, 150,000 of which would be social homes. Build 10 new garden cities.
What might this mean for you?
The Liberal Democrats also set out to ban ‘no fault’ evictions.
They pledged to establish a national register of landlords. It’s not clear what this means for landlords just yet, it could lead to more transparency but also more administrative responsibilities for them.
A significant push from the Liberal Democrats is towards energy efficiency, as they put forward their plans for landlords to upgrade their properties to at least an EPC C rating by 2028. On paper, you’d imagine this would be less fortunate for landlords with older, less efficient properties as the required upgrades may be more costly.
Speaking of making homes more energy efficient, the Liberal Democrats will also look to expand incentives for households that install solar panels – although it’s not entirely clear how landlords could benefit here.
On the general housing front, the Liberal Democrats pledged to build 380,000 homes annually, with 150,000 (39%) of them being social housing. Their proposed ‘use it or lose it’ planning permission policy may support with this.
Stable tenancies and abolish ‘no-fault’ evictions.
Push for rent controls to be introduced for local authorities.
Provide 150,000 new socially rented homes each year via house building and the purchase/refurbishment of existing housing.
Tenants to have the right to insist their landlord access property-linked finance on their behalf.
New homes to meet energy efficiency standards, with developers installing solar panels and heat pumps on new homes where appropriate.
Invest £29bn in insulating homes to an EPC B rating or above, as part of 10-year program.
What might this mean for you?
The Green Party manifesto demonstrated their strong commitment to sustainability in the housing market.
Like their counterparts, the Green Party planned to abolish ‘no fault’ evictions too. They pledged to empower tenants by introducing rent controls which is likely to lead to a cap on how much landlords can charge for rentals.
Like the Lib Dems, the Green Party said they would aim to deliver 150,000 socially-rented homes each year, but not just building new ones, they plan to refurbish existing homes. This initiative will likely impact the broader housing market, but also landlords who may look to sell their property further down the line.
The Green Party said they would have pushed for tenants to have the right to insist that their landlords access property-linked finance on their behalf. Although landlords would not have to provide any up-front finance, they would have to repay the debt and will ‘benefit from the improved value of the property.’
Lastly, they intended to invest a large proportion of their budget on investing in home insulation to get them rated EPC B or above, as part of a 10-year program. New homes will also be required to meet high energy efficiency standards including the installation of solar panels and heat pumps.
Encourage smaller landlords into the rental markets by scrapping Section 24.
Abolish the entire Renters’ Reform Bill – including the proposed ban on ‘no-fault’ evictions.
Fast track new housing developments on brownfield sites.
Cutting stamp duty on properties valued under £750,000.
What might this mean for you?
Reform UK’s manifesto reflects a clear focus on supporting landlords through deregulation and wider tax incentives.
They pledged to scrap Section 24 which they say the tax system should ‘encourage smaller landlords into the rental markets, not penalise them’. They say this would restore landlords’ rights to deduct finance costs and mortgage interest from tax on rental income.
Reform UK proposed a different path to the other parties and intend to abolish the entire Renters’ Reform Bill.
If they were elected and abolished it, it would mean:
Abolish ‘no fault’ evictions’: Landlords would retain the ability to end tenancies more flexibly.
Lifetime deposit: Tenants would continue to face higher upfront costs when moving, while landlords would not need to adjust to managing a deposit transfer system.
Less regulation around tenant living conditions
Landlord and tenant ombudsman:Disputes continue to be handled through existing legal channels.
Regulation of rent increases:Landlords would maintain greater control of setting rents in line with market conditions.
The proposal to cut stamp duty on properties valued under £750,000 was designed to make home buying more accessible to more people. For landlords, this reduction could decrease the upfront costs associated with expanding their property portfolios, making it less costly to acquire new rental properties.
Each major political party had laid out distinct plans that could have significantly affect landlords and the wider housing market. In summary, here’s what the parties pledged which could impact landlords and the wider housing market:
Conservative Party: Abolish Section 21 ‘no fault’ evictions, provide two-year temporary Capital Gains Tax relief for landlords who sell to their tenants, provide more powers to councils so that they can manage the ‘uncontrolled growth’ of holiday lets, no increase in residential stamp duty and to maintain Private Residence Relief.
Labour Party: Abolish Section 21 ‘no fault’ evictions, empower tenants to challenge ‘unreasonable’ rent increases, extend health and safety standards to the private sector, increase stamp duty paid by non-UK residents and substantially increase home building with 1.5 million new homes.
Liberal Democrats:Enhance tenant security and energy efficiency by abolishing Section 21 ‘no fault’ evictions, requiring property upgrades to at least an EPC C rating, incentivise home owners that install solar panels and build 380,000 homes annually.
Green Party: Robust sustainability measures with a focus on tenant rights through the abolition of Section 21 ‘no fault’ evictions, introduction of rent controls, provide 150,000 socially rented homes including refurbishment of existing housing, invest largely in insulating homes to EPC B rating or above.
Reform UK: Encourage smaller landlords into the rental markets, abolish the Renters’ Reform Bill, cutting stamp duty on properties valued under £750,000.
These initiatives differ in their own unique way and would impact landlords, holiday home owners and the general housing market in some way or another.
Despite these initiatives, there are some things within your control as a landlord though. By insuring your second or holiday home for the cover you need, you can be protected for things such as accidental damage, unoccupancy and business interruption, amongst others.
Disclaimer: This article was provided for information purposes only and is not intended to influence any political decisions or preferences, nor do we have any political affiliations. The content outlines potential impacts based on the publicised manifesto pledges of various parties for the 2024 General Election. Our goal is to help you make the most informed decisions about your Home Insurance and Holiday Home Insurance coverage, regardless of political context.
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