2024 Manifestos: Key Proposals for Landlords

The 2024 manifestos of both the Labour and Conservative parties outline several policies that will impact landlords, tenants, and the housing market in England and Wales. Below, we delve into the critical proposals from each party that specifically affect the rental sector and property management.

Labour Party Manifesto

Building and Planning Policies

Housing Construction: Labour commits to building 1.5 million new homes over the next parliament, emphasising the importance of creating jobs across England .
Planning Framework: They plan to update the National Policy Planning Framework to restore mandatory housing targets and ensure local authorities have up-to-date Local Plans.
Green Belt and Brownfield Development: Labour will prioritise brownfield development but will also strategically manage green belt land to build more homes in suitable locations.

Regulation of the Private Rented Sector

Abolition of Section 21: Labour intends to abolish Section 21 'no fault' evictions, preventing landlords from evicting tenants without a valid reason.
Rent Control and Standards: They plan to empower tenants to challenge unreasonable rent increases and improve the standards in the private rental sector, including extending ‘Awaab’s Law’ to ensure safe and habitable conditions.

Leasehold Reforms

Ending Leasehold Issues: Labour will enact reforms to end the leasehold system, making commonhold the default tenure for new housing developments and tackling unfair ground rent charges.

Affordable Housing

Increasing Social Housing: Labour aims to significantly increase social and affordable housebuilding, focusing on building new social rented homes and protecting existing social housing stock.

First-Time Buyers and Mortgage Support

Mortgage Guarantee Scheme: Labour will introduce a permanent mortgage guarantee scheme to support first-time buyers who struggle to save for a large deposit, aiming to reduce mortgage costs.

Conservative Party Manifesto

Building and Planning Policies

Home Construction Targets: The Conservatives commit to building 1.6 million homes in England during the next parliament, including unlocking the construction of 100,000 new homes by abolishing legacy EU 'nutrient neutrality' rules.
Urban Regeneration: They propose creating urban development corporations in partnership with the private sector to support new housing quarters in cities like Leeds, Liverpool, and York.

Support for Landlords

Capital Gains Tax Relief: The Conservatives plan to introduce a two-year temporary Capital Gains Tax relief for landlords who sell to their existing tenants, encouraging the transfer of properties to occupants.
Right to Buy: They will protect the Right to Buy laws, ensuring that discounts rise with inflation and opposing any reduction in discounts proposed by Labour.

Regulation of the Rental Market

Renters Reform Bill: This bill will abolish Section 21 evictions while strengthening the grounds for landlords to evict tenants guilty of anti-social behaviour. It aims to balance fairness for both landlords and renters.

Leasehold Reforms

Leasehold Changes: The Conservatives will continue leasehold reforms by capping ground rents at £250, reducing them to peppercorn over time, and making it easier for leaseholders to adopt commonhold.

Housing Affordability and Homeownership

Help to Buy and Mortgage Guarantee: They will launch a new Help to Buy scheme, providing first-time buyers with an equity loan of up to 20%, and continue the Mortgage Guarantee Scheme to support homeownership with low deposits.

Conclusion

Both parties propose significant changes to England and Wales's housing and rental markets. Labour focuses on extensive building programs, tenant protections, and abolishing leaseholds, while the Conservatives emphasise homeownership support, landlord tax reliefs, and urban regeneration. These policies will profoundly impact landlords, tenants, and property management practices nationwide.

For landlords, staying informed about these proposals and understanding their potential effects on property investments and rental operations will be crucial as the political landscape evolves.