10:06 AM, 14th June 2024, About a month ago 39
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Well, what do landlords make of the political party manifestos this week?
The big one is Labour which is promising to ban Section 21 ‘no-fault’ evictions on day one. There’s still no indication of how they will do that.
The Tories say they will resurrect the Renters (Reform) Bill which has been such a success for them.
I was left with an empty feeling – none of the parties have really laid out a plan on how they will deal with the ‘housing crisis’.
I’ve said before it’s only a crisis when landlords are at fault.
Indeed, there’s not a lot to choose between Labour and the Conservatives. Either way, it’s going to be more of the same for landlords.
I hope this is not the end of the PRS. Will we be saying by Christmas, ‘Will the last landlord to leave the PRS, please switch off the lights?’
Also, there’s no indication of rent controls which Labour will undoubtedly bring in at a local level to deal with ‘affordability issues’. I’m guessing that all councils will do this.
I’m also hoping they don’t prevent the sale of rented houses to prevent an exodus of landlords. Some Labour figures have previously said they don’t agree with a landlord evicting if they are selling or want to move in.
To Labour and its supporters – it’s crucial that landlords get possession when they need it. If you don’t want a tenant evicted for racking up arrears, then why don’t you pay?
I can see the only way to sell is with a sitting tenant. So, expect property values to take a hit too.
If there is an eviction ban and rent controls, then give it a few years when investment dries up and demand increases rents to eye-watering levels and we might see landlords being offered all sorts of encouragement to re-invest. Probably in time for the next election.
I imagine there were lots of landlords calling their estate agents in the aftermath of the dull speech from Sir Kier. He’s not a people motivator, is he?
Would you want to invest under a Labour government that is going to work overtime to make you the scourge of the modern world? Mind you, the Tories didn’t do much to help our cause either.
Ben Beadle of the NRLA is still welcoming the end of Section 21 if the courts are sorted out and the PRS works for both tenants and landlords.
If ever there was a moment for a leading light in the PRS to speak sense to power, this was it. But Beadle has fudged it once again.
We can’t build enough houses, including social homes, because of planning, money and the lack of skills and materials. Labour says it will build 1.5 million homes in the first Parliament! That’s not going to happen. Otherwise, it’s a great ambition.
Along with abolishing Section 21, Labour says it will prevent renters from being exploited and discriminated against (whatever that means) and give them the power to challenge unreasonable rent increases.
This is nonsense on stilts because lots of tenants will object and create a logjam on the numbers heading to the tribunal courts.
I was going to mention this the other week because any opportunity to object to a rent rise will effectively mean a rent cap in reality as landlords think twice about the aggro of putting rents up.
I also think that politicians must stop portraying tenants as some sort of victim and landlords as greedy and exploitative. It’s ridiculous and unfair.
And they raise the old spectre that standards in the PRS will be raised – how? Why? Just use the laws you have to crackdown on criminal landlords.
Most of us agree with renters’ rights, who wouldn’t? But the rights of landlords are also important, and we aren’t all bad people.
We are being tarred with the same brush that we overcharge on rent, have poor-quality homes and evict tenants on a whim. Decent landlords don’t – but no one is speaking up for decent landlords.
Labour will also extend Awaab’s Law to the PRS which means that landlords will be liable – I imagine legally – for mould even if the tenant has caused it.
We will also – inevitably – see the return of EPC regulations so we’d better get saving to improve our properties.
I predict that holiday lets will be on life support if Labour wins, and student lets will go periodic. CGT will also go up (even if it’s just for landlords selling).
Does anyone else have the feeling of staring down the barrel of a gun? How many ex-landlords have you smiled at when they’ve urged you to sell up and get out while the going was good?
I fear the negativity of being a landlord is going to get cranked up so we will leave through sheer shame. We’ve put up with a lot, from the section 24 idiocy to selective licensing, and here we have the prospect of a Labour party that not only doesn’t like us, but also doesn’t understand how the housing sector works and what we do to house people.
Even if we don’t organise ourselves, landlords individually might lead the stampede to the exit and issue lots of eviction notices (hopefully, section 21s, natch) and put their houses on the market.
We would see house prices fall, tenants made homeless, and landlords leave a sector that is increasingly geared towards making our lives difficult.
It would be the perfect start to a spiteful, ignorant and ill-thought out Labour government plan for the PRS that gets the reality check they aren’t expecting but fully deserve.
Until next time,
The Landlord Crusader
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xBrito
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Sign Up11:23 AM, 14th June 2024, About a month ago
Reply to the comment left by Coastal at 14/06/2024 - 11:07
Voting for Farage would be a clear sign of madness - we all seen how he and his cohorts lied about brexit
Reluctant Landlord
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Sign Up11:25 AM, 14th June 2024, About a month ago
Reply to the comment left by Stella at 14/06/2024 - 11:15
the question is who do you vote for to do that? Reform may cause a ripple in voting behaviour, with them gaining votes by protest, but that won't translate into MP's bums on seats in the Commons in order to pose any threat to Labour. You might find they get in bed with them anyway just to they keep themselves in the limelight.
Voting ANY of the others are pointless so you are back to the Conservatives. Don't like it, but what other choice is there. Lots of Tory MP's have rentals so perhaps they will now vote freely as its going to stuff them up if Labour start attacking the PRS even further??? There was fair dissent still in Tory ranks with the RRB just before it was canned - and if Labour want to supercharge this when surely this is the only avenue we have to stop the onslaught?
Can you really see Reform heckling from the back (even if they do oppose any Labour PRS plans) and being even heard leta alone listened to???
Niknak Harris
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Sign Up11:54 AM, 14th June 2024, About a month ago
Regarding getting rid of section 21 I have a horrible feeling they are going to introduce emergency legislation on day one if Labour get into number 10. Rayner has been saying it all along, this would mean they would have to declare a housing emergency and ban all evictions, while they try to rush through a re-hashed RRB which is tantamount to communism! There will be I have no doubt rent controls, the ball will be considerably in the tenants court!! All because all consecutive government's have not built enough housing, so the PRS are being leaned on and used as social housing for the government by way of proxy. We own 4 flats and have a good relationship with our tenants who have lived in them for years two are in their late 60's, we will simply not re-rent them when they leave and move back in. Ordinarily we would not have done this but it seems like we have no choice with what Labour is proposing.
Yvonne Francis
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Sign Up11:59 AM, 14th June 2024, About a month ago
Reply to the comment left by JB at 14/06/2024 - 10:36
That's tantamount to voting Labour and believe me the lights will certainly be out!
Bryan
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Sign Up11:59 AM, 14th June 2024, About a month ago
Reply to the comment left by Stella at 14/06/2024 - 10:52
Not wasted Stella. It sends a message. There is a silent majority who will vote Reform but are afraid to say due to the picture painted by far left and the Guardian readers that Reform is racist, bigoted etc. I hope they get some seats, but even if they do not there will be a massive overall percentage to reform. This will have shock waves within parliament. It will mean support is growing and other parties will need to change to recover that vote. If we truly want change we have to vote for it. All parties start with small steps. UKIP was the biggest party in the EU parliament. It takes courage and conviction to change. It will certainly change the Tories. But we have to think long term 6-10 years. Lets face it, a vote for Greens, independents or SDP is by the same judgement a wasted vote in that case.
Stella
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Sign Up12:16 PM, 14th June 2024, About a month ago
Reply to the comment left by Reluctant Landlord at 14/06/2024 - 11:25
I am not a fan of the Conservative party.
Their ill conceived RRB, section 24 and many other unfair things.
Labour keep dodging the questions on CGT and I am pretty sure it will be increased possibly to 45% as soon as they are in.
I will therefore hold my nose and vote Conservative simply because I trust them a bit more with CGT
Cider Drinker
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Sign Up12:26 PM, 14th June 2024, About a month ago
Reply to the comment left by xBrito at 14/06/2024 - 10:34
Net migration to zero doesn’t mean fewer doctors and nurses. It means foreign doctors and nurses replace those people that leave the U.K. We would still accept applicants from people with the skills that the UK needs. We just wouldn’t accept those that are being sent to destroy our finances and way of life. The drug dealers and benefit fraudsters, for example.
Net zero migration would mean we would have 3 or 4 million fewer people looking for houses over the next Parliament. Maybe maths ain’t your thing but that is also 3 or 4 million fewer people seeking NHS treatment.
Reform UK is possibly the last roll of the dice.
It’s clear that the country wants change. The choice is a change BACK to the financial incompetence of the Labour Party (Liam Byrne - I’m sorry, there’s no money) when unions wield their power and stop us burying the dead whilst rubbish piles up in the streets.
Or we can vote for REAL change.
Use your vote wisely. Reform are second in the opinion polls.
A Conservative vote is a wasted vote.
GlanACC
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Sign Up12:31 PM, 14th June 2024, About a month ago
Any vote .. for any party is NOT a wasted vote, even a spoilt ballot paper (a protest vote) is a vote that is counted. NOT voting at all is a wated vote (and removes any moaning rights you may have going forward).
TheBiggerPicture
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Sign Up12:34 PM, 14th June 2024, About a month ago
Reply to the comment left by Reluctant Landlord at 14/06/2024 - 11:25
This election will be a launchpad for Reform. Conservatives are going to lose anyway. So you can truly vote your conscience.
Dennis Forrest
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Sign Up12:42 PM, 14th June 2024, About a month ago
Under a Labour government, having ruled out many ways of raising tax, I can see CGT rising to the same level as income tax so there will soon be a 20%, 40% and 45% rate. Also of course this gain will be added to your income for that year so even if your are only a 20% income tax payer a sizeable gain could see most of your gain taxed at 40%.
I may be wrong but I can't see any new government being able to change the CGT rates until 6 April 2025. To do so would penalise those who have already sold and paid most if not all of their CGT under the 60 day reporting rules.
So hopefully we might have 9 months to sell up.