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Who should you vote for in today’s Labour or Conservative election? Rental platform Goodlord compared the housing policies of the two major parties.
Housing is a key policy focus for all political parties. With the cost of living constantly rising, demands for greater energy efficiency and rising mortgage and rent prices, it affects everyone in the UK. So what are the two main parties promising on housing?
The Conservative Party will reintroduce the Leaseholders (Reform) Bill, which failed to pass Parliament before it was dissolved for the general election.
Instead, Labour has decided to focus on a range of areas affecting landlords, letting agents and tenants in the sector as part of its mission to “break down barriers to opportunity”.
As of July 2nd, opinion polls show Labour with 40% support and the Conservatives with 21%. With the general election on July 4th looming, real estate agents need to understand the housing policies of the two major parties now.
1. Reforming private rental property
Conservative Party
The Conservative government’s policy towards the private rented sector is no secret: the Landlords (Reform) Bill, first published in 2019, will be reintroduced into Parliament if the party wins the election.
In its manifesto, the party said it would work to pass the Tenants (Reform) Bill to “bring fairness to both landlords and tenants in the rental market”.
The Bill includes measures to abolish section 21 (“no-fault”) evictions and strengthen other grounds for landlords to evict private tenants who commit anti-social behaviour.
Labor Party
Labour had previously made it clear it had “serious doubts” about the version of the Leaseholders (Reform) Bill that was put forward, after several clauses were removed following stiff resistance from Conservative backbench MPs.
The party’s plans would “legislate where the Conservatives have failed” by overhauling regulation of the private rented sector.
If Labour is elected, it will immediately abolish “no-fault” evictions under Article 21. The party will also take “decisive action to improve building safety, including through regulation”.
2. Introduction of rent control
Conservative Party
While some in the Conservative Party are in favour of a rent freeze, the current government has rejected calls for one from Labour London Mayor Sadiq Khan and others.
The White Paper for the Landlords (Reform) Bill states: “This Government does not support the introduction of rent control to set rent levels at the start of a tenancy.”
Labor Party
There are many vocal supporters of rent control within the Labour Party, including Sadiq Khan and Manchester Mayor Andy Burnham, but the party also has its opponents, including senior MP and Labour campaign manager Shabana Mahmood.
It would also give tenants the power to “challenge unjustified rent increases”, although the manifesto does not say how this would be done.
3. Expansion of housing supply
Conservative Party
As part of their manifesto, the Conservatives say they would aim to deliver 1.6 million homes if elected – promising to do this “in the right places and while protecting the countryside”.
In 2021, the Conservative government set an ambitious target of building 300,000 homes by the mid-2020s.
According to the most recent data available, the government was able to build just 234,000 homes per year.
Labor Party
Labour has set a target in its manifesto to build 1.5 million new homes as part of its plans to boost economic growth – a target it believes will be achieved in the new parliament.
The party wants to put local authorities and communities at the heart of building homes in their areas.
Both Labour and the Conservatives will likely place a strong emphasis on utilising brownfield areas and developing previously used land wherever possible.
But Labour plans to free up and prioritise “lower quality ‘grey belt’ land” and there will be a “golden rule” to ensure any development benefits both the local community and the surrounding environment.
4. Housing Standards
Conservative Party
The Conservative manifesto does not include any regulation of housing standards in the private rented sector.
However, if the Bill is passed by Parliament again, the Affordable Housing Standard will apply in conjunction with the Landlords (Reform) Bill. During the Bill’s third reading, the Government confirmed that “by applying and enforcing the Affordable Housing Standard for the first time in the private rented sector, we will ensure that everyone has a safe and decent home”.
Labor Party
If Labour is elected after 4 July, the Awaab Law will be introduced into the private rented sector.
The legislation was originally introduced in the social sector in July 2023 following the death of one-year-old Awaab Ishaq from “a result of severe respiratory illness caused by prolonged exposure to mould in the domestic environment”.
The law requires landlords to investigate hazards within 14 days and begin repairs within seven days of the investigation. For emergency repairs, landlords must fix the problem within 24 hours.
5. Regulation of vacation homes and short-term rentals
Conservative Party
The current administration has begun taking steps in recent months to crack down on short-term and vacation rentals, particularly in tourist areas.
If elected, the Conservatives will “ensure that local authorities have the powers they need to control the unbridled growth of holiday rentals”.
It does not specify how this will be achieved, but it is reasonable to assume that it will be achieved through the Tenancies (Reform) Bill.
Labor Party
In July 2022, the Labour Party floated a scheme for short-term lettings in England similar to the Welsh licensing system.
This has the same objective as measures proposed by the Conservative government: to support tourist destinations that have been hit hard by the influx of holiday homes.
However, their manifesto makes no mention of short-term rentals, so it is unclear whether the party has a plan for controlling short-term rentals if elected.
6. Leasehold vs. Freehold
Conservative Party
With the Leasehold and Freehold Reform Bill now passed by the government on the final day of Parliament, both the Conservative and Labour parties are considering further regulation of leasehold and freehold in the private rented sector.
In their manifesto, the Conservatives promise to cap ground rents at £250 and then reduce them over time to a minimum level.
They also plan to “complete the tenancy reform process and improve the lives of” more than four million leaseholders so they do not unjustly lose their property and capital, as well as make it easier to acquire communal land.
Labor Party
Labour also wants to take further steps to “ban new leasehold apartments and make shared tenure the default tenure”.
It will also tackle the issue of high and unregulated land price changes and maintenance fees, although few details have been given on how this will be achieved and how rates will be made more affordable.
If Labour is elected, it will bring forward a series of Legislation Commission proposals which will focus on “tenant enfranchisement, management rights and the commons”.
This article is provided as a guide only and does not constitute legal advice. Good Road Website.