What Does The General Election 2024 Mean For Landlords?: Manifestos have just been released this week. Keir Starmer from the Labour Party has given a very long speech, over one hour, and a 136-page manifesto detailing what he plans to do if he becomes the new Prime Minister. This includes his plans for the property market. Additionally, hot off the press this week, Rishi Sunak, the current Prime Minister from the Conservative Party, has also outlined his plans if he remains in power.
In a recent video, I aimed to save you the hours I've spent researching, listening to speeches, and reading extensive manifestos. I succinctly explain what both the Conservative and Labour parties are proposing. I hope the video at the top of the page will help you to decide who to vote for. It provides detailed insights into: the economy; the country's direction; and the property industry, so you can stay ahead of the game. In this article, I will give you the top policies from both parties that impact landlords and property investors!
1. What Does The General Election 2024 Mean For Landlords? Conservatives!
The Conservatives are traditionally considered the party of business. But does this manifesto live up to that reputation? Here are 5 of their policies. Watch the full video at the top of the page for a full breakdown of the rest!
1. Stamp Duty: Firstly, some good news. The stamp duty exemption threshold for first-time buyers will rise from £300,000 to £425,000 if the Conservatives are re-elected.
2. Green Belt: On the other hand, the Conservatives say they want to protect Green Belt land (with limited exceptions). Green Belt is protected land around the outside of towns. This will mean less options to build new homes, not so good for developers or home buyers!
3. Help To Buy: There is also a new Help To Buy scheme proposed. It will offer equity loans of up to 20% towards the cost of a new build home with a 5% deposit. I am not a big fan of Help To Buy, as I think it really only helps developers to sell, rather than people to buy. This is because you can only use it to buy a new built home and cannot rent the property out.
4. Holiday Let Regulations: The Conservatives also plan to restrict holiday lets, which will impact the serviced accommodation sector. If you rent your property on Airbnb, or are doing rent to serviced accommodation, this could impact you.
5. Rental Reform Bill: They will abolish Section 21, or so-called ‘no fault’, evictions meaning that you will need to go to court to remove a tenant. They say they will reform the courts to allow for this. This will make things much harder for landlords.
2. What Does The General Election 2024 Mean For Landlords? Labour!
The Labour Party are traditionally considered the party of the workers. However, Labour has now said they are the party of wealth creation too! Let’s take a look at 5 of their policies. Again, for a full breakdown of all of their policies, check out the video at the top of the page!
1. New Homes: Labour wants to build 1.5 million new homes over the next Parliament. This is a good goal, it remains to be seen if they can actually do it!
2. Funding For Planning Departments: One thing I have noticed, as a developer, is that what keeps new homes from being built is often planning departments’ speed of operation. Because they don’t have enough staff and have a huge workload, things simply don’t get done in a timely manner. Labour has promised to fix this. They plan to increase funding to planning departments and employ more staff!
3. Stamp Duty: The bad news is that Labour plan to increase stamp duty. The good news is that this increase only applies to foreign investors! UK non-residents will pay an extra 1%!
4. Reviewing Rent To Buy: Another bit of bad news, but only if you are a council or housing association tenant. Rent To Buy, which allows you to buy your home at a big discount, will be placed under review. This may mean that you no longer have an option to buy your home! If you have the right to buy your council or housing association property, you should exercise that right as soon as you can!
5. Green Belt And Brownfield Construction: Labour are committed to getting homes built. They will prioritise construction on sites that have been previously used for development (i.e. Brownfield sites) by fast-tracking planning approvals. But they accept this will not be enough. They are therefore open to some building on Green Belt land, particularly on what they describe as ‘lower-quality Green Belt’.
What Does The General Election 2024 Mean For Landlords? There Is Opportunity Regardless Of The Result!
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