Labour Government – Time To Sell?
The only certainty at the moment is uncertainty for Landlords. Things were tough enough with the Conservative government but will things get worse under Labour?
If you are thinking about selling some or all of your Property Investment Portfolio, then get in touch to discuss the best exit strategy for you.
More Anti-Landlord Legislation?
With the recent election of a Labour government, significant changes are anticipated in the housing and rental sectors. For landlords in Greater Manchester, these changes could have profound implications for property investments. Now, we don’t have a crystal ball, so separating the fact from the fiction is difficult. This is written based on what we have heard MAY happen. Here’s why selling your single let and HMO properties now might be a prudent decision.
Removal of No Fault Evictions (Section 21)
If you have ever had to rely on the courts to remove a tenant either by way of S21 or S8, you know it is a drawn out process that lacks certainty. The loss of a way to quickly remove tenants is a costly issue, especially in HMOs where it can mean that one bad tenant scares away all your good tenants. The courts simply do not have the capacity to deal with the increased demand which could result in costly issues for Landlords.
Rent Control Measures (Rent Caps)
Labour has indicated a willingness to introduce rent control measures to limit rent increases and make housing more affordable. While this is beneficial for tenants, it could significantly impact rental income for landlords, making it harder to achieve desired returns on investment or even just break even. Should rent caps be extended outside of Scotland, then Landlords ability to keep rents at market rates will be severely impacted. This means that rents can over a period fall well behind market rates in an environment when costs are spiralling out of control.
Awaab’s Law
As any Landlord knows, most mould issues in rented properties are due to the way the tenants use the property and there is often little that the Landlord can do to improve the situation. By enforcing Awaab’s Law it is likely to mean that tenant take even less responsibility for their own actions and the Landlords will yet again become the scapegoats and get punished for not fixing issues that are outside of their control. There is the argument that this will further erode Lord Dennings ‘tenant like manner’ responsibility on tenants.
Stringent Rental Regulations
The Labour government has promised to implement stricter regulations on rental properties to ensure better living conditions for tenants. This could mean more frequent inspections, higher compliance costs, and more stringent enforcement of housing standards. This is likely to increase costs for Landlords.
Tax
Whether Property, Income, Capital Gains, Inheritance or any other tax, it seems certain that the tax burden on Landlords will increase.
Changing Market Sentiment
The new government’s policies might shift investor sentiment, leading to a cooling of the property market. By selling your properties now, you can capitalise on current market conditions before any potential downturns caused by these political changes.
Take Action Now
If you’re considering selling your investment properties in Greater Manchester, now is the time to act. Contact Let Me Manchester today to have a chat about your options and agree a strategy that meets your asset disposal objectives.