What does the election mean for the Lettings market?

The Labour Party secured a majority victory in the 2024 general election, resulting in Keir Starmer becoming the new Prime Minister. Throughout his campaign he has been vocal on his view of property and housing in general, stating that “having a place to call your own is the bedrock of security and aspiration”.  

Angela Rayner has been appointed as Secretary of State for levelling up, housing and communities. With this in mind, what are Labour’s plans for the property market? 

Renters Reform Bill & Section 21 

Prior to the election announcement, significant changes were anticipated in the property industry through the Renters Reform Bill. Although it did not pass in time to become law, the Labour Party is expected to take up the bill and continue its progression. It is possible that Labour will look to take the bill further than the initial plans proposed by the Conservatives. 

Although previously stating that they would abolish Section 21 ‘no-fault’ evictions immediately, they have now admitted the practicalities of this are far more complex and therefore would take more time to implement. The sector would also need time to properly prepare for such an impactful change.  

As agents we see directly how new policies affect both sides of the market, and it is important for the new government to consider how any reform in its support of tenants, will also affect landlords. If it is unworkable for landlords, this may inadvertently compound the situation and further reduce the supply of rental properties, with landlords selling up and exiting the buy-to-let market. 

Leasehold Reform 

Rishi Sunak’s government planned major reforms to the leasehold system. However, the election announcement led to the Leasehold and Freehold Reform Act being diluted to pass quickly before Parliament dissolved. 

Labour aims to go beyond this legislation and the Conservative manifesto, by pledging to "end the feudal leasehold system." They plan to implement the Law Commission’s recommendations on enfranchisement, right to manage, and commonhold, and in the short term, Labour wants to ban new leasehold flats and make commonhold the standard for apartment blocks. Owning a property in commonhold would allow you to own the freehold of your apartment and mean you share the ownership of and responsibility for common areas and services in your block 

They also seek to regulate and reduce unsustainable ground rents and maintenance charges.  

Until Labour’s plans are firmly in place, the full impact on the lettings market remains to be confirmed. However, it seems clear that Labour’s main focus is to provide the nation with more stability, which is also being translated into the property sector.  

We are committed to keeping you informed about the latest developments and how they might affect you. As the Labour Government begins to implement its property and housing policies, we will provide timely updates and detailed analysis to help you navigate these changes and make informed decisions.