In a recent survey conducted by Leaders Romans Group, 60% of individuals who are both tenants and landlords believe a reduction in taxation for landlords along with cutting stamp duty for home purchases would be the most effective policies in the first 100 days of Labour’s term of office.
This points to an awareness that increased taxation on landlords results in higher rents for tenants and that tenants are keen to move away from renting and buy their own homes.
One landlord commented: “Both major parties continue to scapegoat landlords when the real problem in rental sectors is the lack of supply. By imposing tax costs, landlord selective licencing and extra red-tape, all that the politicians achieve is fewer flats to rent. Restricted supply and ever-increasing demand can only lead to higher rents. Ultimately, it will always be to the tenants’ detriment.”
The survey also revealed a unified demand from both tenants and landlords for two areas of significant rental reform they want Labour to implement swiftly.
The first policy all respondents want to see is the re-introduction of a Help to Buy scheme, 34% of tenants, 33% of individuals who are both tenants and landlords and 30% of landlords all responded that this is one of the three policies they want to see introduced. This was closely followed by the introduction of a decent homes standard, where 31% of tenants, 30% of individuals who are both tenants and landlords and 28% of landlords believed this to be an important policy.
Affordability and fair rent controls were highlighted by 45% of tenants as an initiative they would like to see implemented; however, only 10% of landlords and individuals who are tenants and landlords agreed with this. A tenant expressed their concerns, saying, “The incoming government must prioritise affordability. The cost of renting has skyrocketed, making it difficult for many families to make ends meet.” A landlord commented “Any rent restrictions and the abolition of S21 will encourage more landlords to sell up and this will cause a shortage of property to rent and thus higher rents”.
45% of landlords felt strongly that Labour should invest significantly in more social housing, one landlord commented “Need for government to reach its new build housing targets. More social housing required. Shortage of available stock is artificially inflating rents where it is becoming difficult for the young, not only to buy, but also to rent a property.” And another said “Unfortunately years of under-investment in housing both private and social has the effect we have now, lack of affordable housing”. Although only 25% of tenants felt building more social housing was important, one tenant did comment “Building more housing is the way forward but more focussed in social housing.”
Interestingly only 12% of tenants felt the enactment of the Renters (Reform) Bill in its current format was important, only 1% of landlords felt this was important. One landlord commented, “A balanced and fair Renters (Reform) Bill is crucial. It should protect tenants from unfair evictions while also safeguarding landlords’ investments.”
The survey also asked participants which political party they believe best protects their rental interests. The results indicated a split among respondents. The Conservative Party garnered support from 64% of landlords and 17% of tenants, with 15% of landlords and 53% of tenants believing that the Labour Party would be most effective in addressing their concerns. 12% of tenants and landlords believe Reform UK would best protect their interests, with the same percentage agreeing the Liberal Democrats would.
Allison Thompson, National Lettings Managing Director at LRG comments “The shared concerns of tenants and landlords offer Labour a clear roadmap for action. By addressing these concerns promptly, the government has a unique opportunity to create a balanced and sustainable rental market. Leaders Romans Group urges Labour to listen to these voices and take decisive steps to implement the necessary reforms.”
To access the full survey report click here.
