The Conservatives have triumphed at the polls with a large majority – but what does this mean for landlords and the private rented sector?
A commitment to abolishing Section 21, a stamp duty surcharge on non-UK residents and lifetime rental deposits were all key elements of the Conservative manifesto.
On the PRS the Tories also said they will press forward with the roll-out of Universal Credit, bring an end to the benefit freeze and invest £9.2 billion in the energy efficiency of homes, schools and hospitals.
Lifetime rental deposits
A lifetime rental deposit scheme would see deposits transferred from one tenancy to another, rather than tenants having to save up for a ‘second deposit’ when moving house.
Under the plans the tenant would produce a certificate to show the new landlord confirming their deposit will be transferred once the original landlord had made any necessary deductions.
The idea was first mooted by the RLA ahead of the 2017 election. You can read more about the plans here.
In its manifesto the Conservatives confirmed Section 21 repossessions WILL be axed under a Tory government, with ‘possession grounds strengthened’. However, no further details were given as to what this would mean.
The RLA has carried out extensive campaigning work on behalf of members, fighting to protect their rights to repossess their properties in legitimate circumstances.
However, it believes if Section 21 must be removed – with all parties including the pledge in their manifestos – then there need to be significant improvements to grounds-based possession, along with the introduction of a specialist housing court.
The RLA believes that without significant reforms to allow landlords to regain possession of their property where they have a legitimate reason to do so, landlords may choose to leave the sector, reducing the supply of rental properties, something that is already being seen.
Keep an eye on @RLA_News for the latest on the impact of the election result on landlords and the PRS.