Student landlords may be surprised at what the Conservative Party has outlined for the private rented sector (PRS) from abolishing section 21 to reintroducing the Renters (Reform) Bill.
The Bill didn't make it through the 'wash-up' period when the election was called by Rishi Sunak but it's back on the legislative table.
The party's manifesto for the General Election says a new Bill will 'help balance' the housing system.
There's also a promise that the courts will be reformed for the Bill and grounds for evicting anti-social tenants will be strengthened.
Manifesto plans for the PRS
While not addressing any of the manifesto plans for the PRS in his speech, Prime Minister Rishi Sunak said: "We Conservatives will always stand for our values: for aspiration, for freedom, for opportunity, for security."
The Conservatives had already floated the proposal of a temporary two-year Capital Gains Tax (CGT) exemption for landlords who sell a property to a sitting tenant.
Other ideas include the building of 1.6 million new homes, mainly on 'brownfield' land, and the removal of Stamp Duty for first-time buyers when purchasing homes worth up to £425,000.
There's also a 'Help to Buy' scheme with an equity loan of up to 20% for new homes and a minimal 5% deposit with affordable interest rates.
The Tories also say they will limit ground rents to £250 - and then reduce them to a nominal amount.
Local councils will also get powers to regulate holiday lets.
'Pick back up on the Renters (Reform) Bill'
Reaction from the PRS included Nathan Emerson, Propertymark's chief executive, who said: "Any renewed ambition to pick back up on the Renters (Reform) Bill must come with full disclosure and a workable timeline regarding vital court reform before aspects such as Section 21 evictions can sensibly be abolished."
He added that more detail also needs to be seen on the 'Help to Buy' scheme and how it would help.
Tim Bannister, Rightmove's property expert said: "It's an interesting area to consider how renters may be supported in purchasing the home that they live in from their landlord, in the event that they wish to sell.
"One barrier to this is that many renters live in properties that they would be unable to afford to purchase, as the typical affordability criteria to rent a property can be more accessible than the requirements to buy."
Tenants who want to become homeowners
The National Residential Landlords Association's chief executive, Ben Beadle, said: "Tenants who want to become homeowners should be supported to do so.
"Whilst incentivising landlords to sell to existing tenants has the potential to help, it will not reverse the damage to the rental market caused by tax hikes under recent Conservative governments.
"As the Institute for Fiscal Studies has warned, changes to mortgage interest relief and the level of stamp duty paid by landlords have led to higher rents and stifled the supply of homes across the private rental market.”
He adds: "Reform of the rental market should have taken place in the last Parliament.
"As we said then, a balance between security for tenants and policies which retain the confidence of responsible landlords is crucial if we are to deliver much-needed homes for rent."
'No-fault evictions make life intolerable'
Dan Wilson Craw, the deputy chief executive of the campaign group Generation Rent, said: "No-fault evictions make life intolerable for private renters, fuelling homelessness and making it difficult to complain about problems in your home. It is reassuring that the Conservatives remain committed to abolishing these evictions.
"But to enjoy genuinely fairer renting, tenants need stronger protections when evicted for reasons beyond our control, and from unaffordable rent increases that force us out of our homes."
He adds: "The only new policy is a tax break for landlords selling to their tenants. To really have an impact, a portion of this tax break needs to go towards a discount on the price for the tenant, otherwise few will be able to afford to buy out their landlord.
"But many tenants aren't in a position to buy at all: 23,000 households faced homelessness between April and December 2023 because their landlord was selling up.”
'Student landlords will be disappointed'
Simon Thompson, the managing director of Accommodation for Students, said: "A lot of student landlords will be disappointed with the Conservative manifesto.
"While it prioritises renters with a pledge to revive the Renters (Reform) Bill and abolishing 'no-fault', there's not a lot for landlords."
He added: "We have said for a long time that landlords need to be encouraged to invest and they need a supportive tax environment to do that.
"So, tenants might see the manifesto as being welcome news, but there is a downside because landlords might now decide to exit the PRS.
"That would lead to a shortage of rentals and further rent increases - which won't help tenants at all."
