LABOUR CHANGES TO THE RENTAL SECTOR

What are some of the changes the rental market could see from the new Labour Party?

1.    Abolishing Section 21’s

One of the plans labour has in talks it to abolish ‘no fault’ Section 21 evictions. The Section 21 allows landlords to evict tenants without providing a specific reason, hence the potential of ‘no fault evictions’ being abolished.

2.    Challenge Rent Increases

Another potential change is to empower tenants to challenge unreasonable rent increases and ban rental bidding wars, further details on this are still pending.

3.    Rent Caps

Rent caps could be introduced, restricting the amount of tent that can be paid upfront.

4.    Capital Gains Tax

Landlords will need to look out for potential increases in capital gains tax rates as labour seeks alternative funding sources.

5.    EPC Standards

New standard to be introduced by 2030, the specific EPC rating required is not yet determined, it is likely to be a C Rating.

The above are yet to be decided, however these are some of the likely changes that could come into play for landlords!