Is a change of government Starmergeddon for Britain’s landlords?

Writing in Landlord Today, Marc von Grundherr, Director of Benham & Reeves Lettings and Estate Agents, looks at the possible outcome of a Labour Government.

It can be seen here, and and provides a comprehensive overview of the potential implications of a Labour victory in the upcoming 2024 elections, particularly for landlords and the housing market. Here’s a breakdown of his points:

  1. Taxation: It’s anticipated that a Labour government under Sir Keir Starmer would likely maintain or even tighten tax policies affecting landlords. This could include keeping measures such as the removal of tax relief on mortgage interest and possibly increasing capital gains tax rates on property sales.
  2. Housing Policies: Labour may push for the ratification of Section 21, commonly known as “no-fault evictions,” as part of their focus on tenant rights. Additionally, they would likely prioritize environmental initiatives, such as reaching net-zero carbon emissions, which could involve incentives or requirements for landlords to improve property energy efficiency.
  3. Rent Controls: Despite traditional left-leaning values, rent controls are deemed unlikely, considering the negative impact observed in regions where such policies have been implemented, such as Scotland and Berlin.
  4. Economic Policy: There’s uncertainty about how Labour would address economic challenges, such as unemployment and debt. While they may adopt more centrist economic policies akin to Blair/Brown-era New Labour, concerns persist about the potential impact on economic growth and the job market.
  5. Recognition of Landlords’ Role: Despite potential policy shifts, there’s acknowledgment that landlords play a crucial role in providing accommodation, especially in areas where social housing is insufficient. This suggests that a Labour government may eventually recognize the importance of working with landlords to address housing challenges.

Overall, while there are concerns and uncertainties about how a Labour government would affect landlords and the housing market, there’s also recognition that pragmatic approaches may prevail, considering the complex dynamics of housing provision and the broader economic landscape.

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