As the 2024 General Election approaches, student landlords in the UK will be keen to understand how the major political parties plan to address housing issues, specifically for the private rented sector (PRS).
Despite the pressing 'housing crisis' and the much-publicised tenant struggles with Section 21 'no-fault' evictions, housing remains a relatively muted topic in party manifestoes.
However, there are common threads across all three main parties:
- Ban on Section 21 evictions: Regardless of party affiliation, all three promise to ban no-fault evictions under Section 21, providing greater security for renters.
- Leasehold reforms: The parties agree on the need to reform or end the leasehold system, aiming for fairer arrangements for both landlords and tenants.
- New homes: A shared commitment exists to build at least 1.5 million new homes during the next parliamentary term.
Here, the Accommodation for Students team looks at each party's specific housing proposals.
Conservative Party
They've spent 14 years in power, introduced section 24 so landlords who aren't incorporated can't claim mortgage tax relief.
And they've been pushing the Renters (Reform) Bill since 2019.
That would see the end of section 21, the introduction of a national landlord register and the ending of fixed term tenancies.
This last issue was a controversial one for student landlords since period tenancies would lead to tenancy chaos.
At the 11th hour, the Tories brought in a solution that would see a student property tenancy end on a fixed day.
- No rent controls: Prime Minister Rishi Sunak has announced no rent controls, and has mentioned incentives for long-term tenancies
- Tenant's rights: The Conservatives plan to strengthen tenant rights through new legislation - they've said the Renters (Reform) Bill will be brought back
- Property ladder: They will abolish first-time buyer stamp duty on homes less than £425,000 and enhance the Help to Buy scheme
- Sustainable homes: The party aims to build 300,000 new homes annually, with one-third being 'affordable' and all homes will be zero-carbon by 2030
- Social housing and anti-social behaviour: They propose increased funding for social housing and stricter eviction rules for disruptive tenants.
Labour Party
They've been out of power for 14 years and have promised to abolish section 21 'from day one'. Though no one seems to know how this will happen.
Labour also added anti-landlord amendments to the Renters (Reform) Bill and though most were dropped, this did show the party's direction of travel.
There's also talk of rent caps – possibly at a local level with councils handed the power.
Also, the PRS review that was undertaken does hand tenants more rights should Labour take power.
- Section 21 abolition: Labour commits to abolishing Section 21 evictions
- Rent caps: Capping rent rises at inflation rates
- Tax on second homes: Sir Keir Starmer plans to introduce a tax on second homes and empty properties
- First-time buyer grant: They propose a £5,000 grant for first-time buyers
- Affordable homes: Labour aims to build one million affordable homes over the next decade.
Liberal Democrats
Fortunately, the Liberal Democrats have no hope of taking power - which will be a relief for any landlord that has read its manifesto.
There are lots of housing pledges for renters, but specifics remain elusive.
The big issue is if the UK's Parliamentary system sees the Lib Dems entering a power-sharing agreement.
- Rent-to-own: Leader Ed Davey aims to help long-term tenants unable to save for a deposit with a 'rent-to-own' scheme - they would own the property outright after 30 years
- National register: Create a national register for landlords
- Energy efficiency: Landlords will be required to upgrade properties to EPC C or above by 2028
- Fair deal for renters: No-fault evictions will be banned; three-year tenancies will become the default.
Reform UK
Still the outsiders but they have interesting ideas for landlords.
- Scrap section 24: Reform aims to encourage smaller landlords by restoring their rights to deduct finance costs and mortgage interest from tax on rental income
- Abolish the Renters (Reform) Bill: Instead of the proposed legislation, Reform will enhance monitoring, appeals and enforcement processes for renters with grievances
- Review the planning system: Fast-track planning and provide tax incentives for brownfield site development
- Reform social housing law: Prioritise local residents and those who have contributed, giving British nationals priority for housing.
SNP
SNP leader John Swinney's speech in Edinburgh did not mention 'housing', but the party aims to tackle the nation's housing emergency if a £1.3 billion cut to the Scottish government's capital budget is returned by the UK government.
The SNP also plans to reintroduce a simplified Help to Buy ISA scheme for first-time buyers.
They will lobby for an annual uplift of Local Housing Allowance, and campaign for devolved Housing Benefit and Local Housing Allowance powers to expand social housing delivery and encourage investment in housebuilding.
Green Party
The Green Party proposes rent controls in overheated rental markets to ensure fair rents and an end to no-fault evictions.
Funding will be provided to councils for affordable social housing, lifting restrictive borrowing rules.
Ending Right to Buy will keep council homes available and affordable.
A 'community right to buy' will allow local authorities to purchase certain properties, including those needing energy efficiency improvements.
There is a goal to create 150,000 new social homes annually through new builds, refurbishments and community purchases.
Renters will benefit from stable tenancies, energy efficiency improvements and residential tenancy boards.
Scottish Labour Party
Scottish Labour aims to protect tenants from unaffordable rents and unscrupulous landlords.
They support practical and workable rent regulations and there's a focus on improving tenant rights to create 'proper' homes within the rented sector.
Plaid Cymru
Plaid Cymru advocates for fair rents and rent control within the private rental sector.
Their proposed Right to Adequate Housing Bill in Wales includes powers for rent controls and other market interventions to enhance affordability for residents.
'Landlords must weigh these housing promises'
Simon Thompson, the managing director of Accommodation for Students, said: "Landlords must weigh these housing promises carefully when they vote.
"While the parties share some common ground, nuances exist in their approaches.
"Whether it's strengthening tenant rights, building sustainable homes, or addressing homelessness, the election outcome will shape the future of the UK's private rented sector."
He added: "The surprising thing is that despite all the publicity of abolishing section 21 and talk of a housing crisis, there's no real mention of how they will encourage landlords to invest in the PRS."
