The first Newsround under a Labour government – a historic day.
New Labour Government
It's a landslide victory for Labour but it will have some landlords feeling uneasy.
Hopefully their fears will be largely unfounded, but I have no doubt that once this is under control, Section 21 will be repealed.
The good news for landlords is that the economy will hopefully stabilise and bring greater prosperity, which will mean fewer rent arrears and hopefully more financial support for landlords to implement the 'green' improvements to their properties needed to meet the standards by 2030.
Labour's proposals to build more homes are welcome, but changes to planning rules must be implemented first.
Perhaps by the time we publish our next Newsround we will have a clearer idea of what's in store for PRS.
Here are some comments from industry insiders:
Ben Beadle, CEO of the Residential Landlords Association:
I congratulate the Labour Party on winning government – their manifesto promises fundamental reform of the private rented sector, including abolishing section 21 'no explanation' repossessions.
We stand ready to work constructively with the new Government to ensure that the changes are fair and workable for tenants and responsible landlords, and sustainable for years to come.
However, it is crucial that reforms do not exacerbate the already chronic shortage of rental properties to meet demand.
Nathan Emerson, CEO of PropertyMark:
The UK has suffered from a chronic undersupply of sustainable new homes for decades, and any new policies to increase housing supply must be accompanied by full disclosure about how and when development will be carried out.
For years, a housing shortage has driven up prices for both homeowners and renters, making a plan to ensure supply keeps up with real-world demand essential.
With the UK’s population expected to grow to around 70 million over the next decade, providing diverse housing solutions is essential.
Key aspects must include careful consideration to ensure that all new housing is implemented logically in the target areas and that green belts are preserved wherever possible.
Paul Shamprina, founder of Landlord Action:
Labour's election victory and promise to abolish Section 21's “no-fault” evictions have caused huge concern among landlords about the future of their properties and leases.
While the Labour Party has promised to repeal Article 21 from day one, Angela Rayner, the party's deputy leader, recently admitted on LBC radio that the reality of this promise is much more complicated – as we all know by now.
Any immediate ban on Section 21 evictions must first address the current inefficiencies in our court system, and Mr Rayner’s admission of this highlights the need for a balanced approach that takes into account both tenants’ rights and the practices faced by landlords.
However, given Labour’s manifesto promises, we can expect a further increase in the number of landlords issuing section 21 notices in the coming months.
Real estate leaders call for reform
Following recent frequent news reports of landlords calling for new housing reforms to be introduced as soon as possible once a new government is formed, real estate agents are now being asked to do the same and push for the election of new MPs, regardless of which party forms the new government.
Neil Cobbold of Payprop said housing experts were the “voice of the experts” and would “be listened to in the coming Parliament”. After five years of uncertainty, it seems everyone in the industry is now looking for certainty and change.
The delay will allow tenants to go a year without paying rent.
Another industry leader, Andy Halstead, chief executive of HomeLet and Let Alliance, said this week that given the political delays and uncertainty, he was allowing tenants to go rent-free for a year if they wanted to.
All stakeholders in the private rented sector, particularly landlords and tenants, are trying to navigate the turmoil.
It is rarely talked about how easily tenants can now occupy rental property for up to 12 months without paying a penny in rent. This is true, but politicians are running away from addressing the issue. Rent guarantees and legal protections have never been more important.
Landowners see benefits from installing EV chargers
Direct Line published new research this week which found that 86% of landlords with suitable freehold properties would install electric vehicle charging points if their tenants wanted them.
20% of landlords cover the full cost, but most expect their tenants to cover a portion of the cost, roughly 35%. In these situations, landlords should have a written agreement in place about what will happen to the charger if the tenant moves out. There may be ongoing maintenance and repair costs, so it's wise to include this in the agreement.
For homeowners, the benefits of having one installed seem to outweigh the drawbacks.
Forty percent said property values would increase, 40% said it would become more attractive to future tenants, and 15% said it would allow them to charge higher rents.
There are two grants available to help with the purchase and installation of EV charging points, and landlords can access both in their rental properties.
A Direct Line spokesman said:
With the UK government planning to move to zero-emission vehicles by 2035, demand for rental properties with EV chargers is expected to soar as more drivers make the switch.
More homeowners are doing it themselves
New research published by Landbay finds that more than half of landlords now manage their own properties as a full-time job, while just 19% of landlords rely on a property management company and a quarter use a letting agent. Additionally, 65% of self-managed landlords hold their properties in a limited company.
Rob Stanton of Landbay said:
With an increasing number of landlords treating their property portfolio as a full-time job, the real estate sector is becoming more important as a career choice. There is no doubt that managing your own portfolio can be very rewarding, although getting expert advice at the right time is essential.
Are you a self-managing landlord? Or, if you're not, Landlord Law Services has a wealth of information, guides, webinars, legal advice and support to help you manage your own affairs and understand your legal obligations.
We also provide online help and documentation to help you avoid making costly mistakes and save money by doing the work yourself. Learn more here.
Scraps
Landlords and agents call for rental reform to be passed quickly
UK private rents hit record high, data shows
Vacation rentals are not the cause of the housing crisis – STAA
Landlords who violate fire safety laws face prison time
Tenant claims landlord “fails to properly address maintenance issues”
Blog: 'Labour must support the private rented sector – here's how'
Construction begins on railway arch homeless village
Newsround returns next week.