Whether you own your own home, rent or manage a property portfolio, you are likely to be affected by new laws being proposed by political parties as part of their General Election campaigns.
In this instalment of our manifesto comparison series, Thrings Partner Michael Tatters takes a look at some of the pledges being made in the property sector:
Conservatives
- A two-year temporary Capital Gains Tax relief for landlords who sell to their existing tenants.
- Complete the process of leasehold reform.
- A ‘three strikes and you’re out’ expectation of social housing landlords for anti-social behaviour.
- We will pass a Renters Reform Bill that will deliver fairness in the rental market for landlords and renters alike.
- Ensure councils have the powers they need to manage the uncontrolled growth of holiday lets.
Green
- Renters will be given a new right to demand energy efficiency improvements.
- End Section 21 no-fault evictions and introduce long term leases.
- Introduce Private Residential Tenancy Boards to provide an informal, cheap and speedy forum for resolving disputes before they reach a tribunal.
- Local authorities will be funded to meet a new statutory duty of tenancy relations.
- Push for tenants to have the right to insist that their landlords access property-linked finance on their behalf. Landlords will not need to provide any up-front finance, but they would have to repay the debt and will benefit from the improved value of the property. Rent controls would prevent them passing repayments straight on to tenants.
Labour
- Immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.
- Improve building safety, including through regulation, to ensure we never again see a repeat of the Grenfell fire. We will review how to better protect leaseholders from costs and take steps to accelerate the pace of remediation across the country. We will put a renewed focus on ensuring those responsible for the building safety crisis pay to put it right.
- Take further steps to ban new leasehold flats and ensure commonhold is the default tenure.
- Enact the package of Law Commission proposals on leasehold enfranchisement, right to manage and commonhold.
Lib Dem
- Deliver a fair deal for renters by immediately banning no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords.
- Giving local authorities, including National Park Authorities, the powers to end Right to Buy in their areas.
- Abolishing residential leaseholds and capping ground rents to a nominal fee, so that everyone has control over their property.
- Putting the construction sector on a sustainable footing by investing in skills, training and new technologies such as modern methods of construction.
- Give local authorities new powers to control second homes and short-term lets in their areas.
Reform
- Abolish the Renters’ (Reform) Bill and boost the monitoring, appeals and enforcement process for renters with grievances.
- All potential charges for leasehold or freehold residents must be clearly stated and consented to. Enforce Section 106 agreements. Ensure it is cheaper and easier to extend leases to 990 years and buy freeholds.
- Scrap section 24 for Landlords and restore landlords’ rights to deduct finance costs and mortgage interest from tax on rental income.
Michael Tatters, Thrings’ Head of Property Litigation said: “From a property perspective, there are a number of consistent pledges being put forward by the various political parties going into this election, looking to cut red tape and keep the market under control.
“The polarised approach to delivering reform for the rented sector is also one to keep an eye on. With the Renters Reform Bill having failed to make its way through Parliament prior to the snap election being called, despite overcoming so many obstacles to get close to becoming law, it was inevitable that this would feature in the campaigns – including Reform taking such a stark view of this potential legislation with the pledge to scrap it entirely.
“Once a new government is in place, we expect to see some gradual movement on these areas. The possibility of a hung parliament could also mean there is cause for negotiation so we would recommend those with interests in property, whether they are landlords/freeholders or tenants/leaseholders, to take legal advice on how they could be impacted under any new policies.”
Thrings’ Property Litigation lawyers are experienced in reaching resolution in property disputes, acting for both landlords and tenants, often without recourse to court proceedings, and with an excellent track record when cases do go to Court. To find out more, get in contact.