How Will the New Labour Government Transform the UK Housing Market?
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- Опубликовано: 11 сен 2024
- What will this mean for Landlords and Tenants?
The election of a new Labour government, and Prime Minister Sir Kier Starmer, brings a wave of anticipation and uncertainty, particularly regarding the UK housing market and the buy-to-let property sector. As Labour's policies start to unfold, both landlords and tenants are keen to understand the potential impacts.
Labour's Housing Policies
Labour has long championed affordable housing and tenant rights. Their manifesto includes ambitious plans to build 1.5 million new homes over the current parliament, introduce rent controls, and increase ‘protections’ for tenants. This could significantly shift the landscape for both homeowners and the buy-to-let market.
The Renters Reform Bill will be resurrected and will almost certainly include an end to Section 21 ‘no fault’ evictions and more ‘secure’ tenancies.
Impact on the Housing Market
1. Increased Housing Supply: Labour's pledge to build more homes aims to address the chronic housing shortage. This could stabilize or even reduce house prices, making it easier for first-time buyers to enter the market.
2. Affordability: By increasing housing supply, Labour hopes to make homes more affordable. This is particularly beneficial for young people and families currently priced out of the market.
Effects on the Buy-to-Let Market
1. Rent Controls: One of the most talked-about Labour policies is the introduction of rent controls. While this aims to protect tenants from excessive rent hikes, landlords might see a cap on their rental income, potentially reducing the profitability of buy-to-let investments.
2. Tenant Protections: Enhanced tenant protections could include longer tenancies and restrictions on eviction procedures. This provides tenants with greater security but might limit landlords' flexibility in managing their properties and will be a challenge to small landlords.
3. Tax Changes: Labour has suggested revisiting tax reliefs available to landlords. Possible reductions in tax incentives could discourage new buy-to-let investments and prompt some landlords to sell their properties.
What This Means for Landlords
Landlords might face increased regulation and potentially lower returns on their investments. It is crucial for landlords to stay informed about new policies and consider strategies to adapt, such as focusing on property quality and location to attract long-term tenants.
What This Means for Tenants
Tenants are likely to benefit from increased protections and potentially lower rents. Labour's policies aim to create a fairer rental market, offering tenants more stability and affordability.
Immigration
The new Prime Minister has promised to deal with the “small boats” illegal immigration, as well the “processing” the huge backlog of asylum cases. He refused to say what he means by “processing” applications, but it will probably involve some kind of an amnesty or “legacy” scheme as implemented by the Blair government.
In practice, hundreds of thousands of migrants will be granted leave to remain whether or not the arrived in the UK legally. This means asylum seekers will be able to work and could see an end to temporary housing and hotel accommodation.
Conclusion
Prime Minister Sir Kier Starmer’s Labour government’s policies are set to bring significant changes to the UK housing market and the buy-to-let sector. While tenants stand to gain from greater protections and affordability, landlords may need to navigate tighter regulations and potentially lower profits. Staying informed and adaptable will be key for all parties involved.
Understanding these potential changes is crucial for navigating the evolving landscape of the UK housing market. Stay tuned for more insights and expert advice on how to manage your property investments under the new Labour government.
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Thank you, Charles, an excellent presentation again, only thing missing was wishing the new labour government best of luck!
We all need it!!!
@@dugandav1 ha ha. God help us all!
Me personally never ne😮eded labour or the conservatives I make my own luck
Good for you! My sentiments exactly. Make your own luck and Row your own boat!
Interest goes up, inflation goes up, debt increases, increases on capital gains tax goes up, tax on savings, house prices are reduced and devalued. Compulsory purchase at less than current value. 1.5million homes. Sorted.
Thanks
I am from the Washington new town in the north of England (built up until the early 80s) I don’t get why they haven’t had more projects like this using development corporations to bypass all the red tape. I will tell you why, because it is all hot air.
Successive governments have failed to build any significant numbers of council properties for the last 40 or 50 years.
That’s one of the main reasons why there is a shortage and why prices got so high
We need a visual aid of what they want to do, what they are doing, when they plan to do it by, a status bar or percentage to competition. Then we can see what the said they would do, what they have done, what they have failed on. Plus keep an eye on what they are doing. Uk, England and local. We vote these people in but we have no way of knowing what they are doing on the local or national level. I'm sure you could take a few weeks out of your time to instigate each thing but we need to be able to see what they are doing.
We are seeing more detail of Labour's housing plans coming out over the last few days. Not too much detail though?
The two biggest fibs in the Labour manifesto: we will reform the planning system and we will build 300,000 new homes a year. They are not even new fibs, one or more main parties have promised something similar every election since the 1980s.
Every election at least one of the 2 major parties promises to reform the planning process to make it easier to build and by the end of the parliament they have made it worse. The simple fact is that if you put in a planning application for a 200 home estate it will take a minimum of 2-3 years and £500k+ to get to planning permission and that assumes you do not have to appeal a decision and locals do not seek judicial review.
As for the idea that we will build 300,000 homes a year - it will never happen for the simple reason the UK does not have enough skilled trades people to achieve that and those people are retiring faster than replacements getting the skills.
There is no chance of rent controls happening under this Labour govt. They have accepted the argument that rent controls are a failure - just see what has happened in Scotland.
Being a cynic my guess is that by the next general election comes around very little will have changed
You may think you sound cynical but you are 100% correct. The other reason why 1.50 million homes won't get built is because the construction industry doesn't have the manufacturing capacity to meet that target. The new hospital programme will also fail for the same reasons as identified by the National Audit Office. They won't be long in coming to the same conclusion for the houses.
Wonder what they will do with the EPC rating. This is my biggest worry
By giving it to migrants.
Just to be fair, the last government has already given over thousands of properties and many four-star hotels to illegal migrants. Labour will now most likely act legalise those migrants with an amnesty. What it saying to the rest of the world is that if you just come here illegally and throw your passport in the sea, Britain will give you accommodation, money and a nice new UK passport! Can you blame them for coming? What would we all doing their situation?
@@charleskellymoneytipspodca9121
A free passport?!
Meanwhile me, who used to be a dual citizen had to relinquish my British citizenship to become a full citizen of Botswana now has to pay tens of thousands of pula just to reinstate that British passport.
Labour?
Tory?
I just see a purple blob of mould.
@@seanturner1197 you relinquished a British passport and citizenship to become a citizen of Botswana? Really? Now you’re complaining that you have to pay to get your British passport back?
Everyone should pay fees, including those who come here illegally
@@charleskellymoneytipspodca9121
Fair point.
It won’t
RIP LANDLORDS
@@marcwaters2600 Let’s hope you’re wrong. They still need small landlords. They haven’t built council houses since the 1970s in any great number.
Be careful what you wish for. If the smaller private sector landlords leave the market that just means they will be replaced by faceless corporate landlords. The history of UK housing since 1915 shows that every time govt. decides via a combination of tax, rent controls and regulations to punish private sector landlords all that happens is within a couple of years the govt. has to start mass public sector house building to create council estates
Heavenly Father is punishing England for the loot of India 🇮🇳. Amen.
There are millions of Indian people and people of Indian descent living in the UK, including my family. Are you also happy that they will be punished?
Heavenly Father is actually punishing India by putting Modi in charge, you guys don't need enemies.
more people will fall out of middle class losing there homes
Yes. They will be squeezed. The wealthy can afford to pay for advice or move abroad.