Author – Kay Venables – Director of Fishers (Harborne) Ltd
Introduction
Since Fishers was founded in 1913, there have been 29 general elections, so we appreciate through experience, how a change of government and the prospect of changes in legislation can cause concern for landlords and property investors. For this reason, we’ve pulled together this summary of Labour’s three main manifesto pledges related to property lettings with our key ‘Take Aways on each one.
You’ll also see we’ve highlighted the opportunities that will benefit landlords and property investors and the reasons why rental properties remain a good investment. While nothing is set in stone, we hope this report provides you with reassurance, should the new Government’s manifesto pledges become legislation.
Understanding Labour’s Proposed Changes
- Abolition of Section 21: The end of ‘no-fault’ evictions to provide tenants with greater security.
Key Take Away:
Landlords will still be able to sell their property or move back in, given proper notice and adherence to legal procedures. Additionally, Labour proposes more streamlined evictions for non-payment of rent or antisocial behaviour, ensuring landlords can protect their investments efficiently. This means that while there will be increased tenant protections, there will also be effective processes in place to address genuine cases of non-payment or problematic behaviour promptly.
- Rent Controls: Aimed to keep rents affordable for tenants.
Key Take Away:
This can lead to more stable and predictable rental income, reducing tenant turnover and ensuring long-term tenancies. Most landlords typically increase rent by 3-5% when renewing a lease, which aligns with Labour’s vision. In affluent areas, where rents are naturally high, we don’t foresee significant changes. In most cases where landlords have good quality tenants paying the rent and looking after their property, they would welcome tenants staying for longer periods.
- Strengthened Tenant Rights: New measures for clarity on landlord-tenant responsibilities & rights:
Measures Include:
Improved Dispute Resolution – This will help address issues more effectively, reducing legal disputes and improving landlord-tenant relationships.
More Transparent Rent Increases – Clearer rules for rent increases can lead to fewer disputes and greater tenant satisfaction.
Guaranteed Repairs and Maintenance – Labour’s proposals include ensuring landlords adhere to clear standards for property maintenance.
Key Take Away:
This will improve property conditions and enhance the overall value of your rental assets. These regulations are aimed primarily at landlords who neglect basic repairs. However, our landlords, with the support of Fishers, already provide prompt responses to repair requests. Therefore, we do not anticipate significant changes for conscientious landlords who are already maintaining their properties to a high standard.
Regulation and Licensing: Increased regulation of letting agents and a national licensing scheme for landlords will elevate industry standards. This creates a level playing field, ensuring all landlords meet high-quality benchmarks. Our experience with selective licensing in Birmingham shows that while inconvenient, the costs were offset by increased rents, and compliance was mostly an administrative process.
Energy Efficiency: New energy efficiency requirements may involve grants or subsidies to help landlords upgrade their properties. Improved energy efficiency can lower operating costs and make properties more appealing to eco-conscious tenants.
The Benefits for Landlords
Despite the changes, there are several benefits for landlords:
- Higher Standards Across the Board: Regulation and licensing will ensure all landlords adhere to high standards, benefiting the overall reputation of the rental market.
- Cost Savings: Energy-efficient properties can reduce utility costs, making them more attractive to tenants and potentially allowing for higher rental rates.
- Flexibility for Landlords: Even with the abolition of Section 21, landlords retain the ability to sell their property or move back in, provided they follow legal procedures and give the necessary notice.
- Streamlined Evictions: Labour’s proposals include making the process for evictions due to non-payment of rent or antisocial behaviour more straightforward and fairer. This ensures landlords can efficiently address genuine cases of non-payment or problematic behaviour.
Why Rental Properties Remain a Good Investment
- Demand for Rentals: The demand for rental properties remains strong, especially in desirable areas. Rental properties continue to offer a reliable income stream and potential for long-term capital appreciation.
- Flexibility and Control: Owning rental properties gives you control over your investments and the flexibility to adapt to market changes and tenant needs.
- Professional Support: With our expertise and support, you can navigate legislative changes confidently, ensuring compliance and optimising your rental income.
How We Will Support You
At Fishers, we’re dedicated to helping you navigate these changes with confidence. Here’s how we can specifically assist you:
- Expert Guidance: Our team stays informed about all legislative changes and will provide you with up-to-date information and practical advice.
- Compliance Assistance: We will help you understand and comply with new regulations, ensuring your properties meet all necessary standards.
- Tenant Relations: We will work to maintain positive relationships with tenants, making the transition smoother for both parties.
- Energy Efficiency Upgrades: We can guide you through any new requirements for energy efficiency, including finding grants or subsidies to minimise your costs.
- Market Insights: Our long-standing presence in the industry gives us unique insights into market trends, helping you make informed decisions about your investments.
Conclusion
While change can be challenging, it also presents opportunities for growth and improvement. With our support and guidance, you can rest assured your properties and investments are in experienced and expert hands.
We’re committed to helping you navigate any future legislative changes and will always work hard and apply our expertise to ensure you achieve your best outcomes and goals.
Rental properties remain a valuable investment, and with the smart, right approach, you can continue to enjoy the benefits they offer.
