Labour has won the general election held yesterday (4th July) in a landslide victory.
With only five seats yet to be confirmed, Labour has won 411 seats so far, 210 more than the last election in 2019.
Meanwhile, the Conservative party has suffered a significant hit, having lost 249 seats — taking its current seat count to 119.
While Rishi Sunak has kept his seat in his constituency, Richmond and Northallerton in Yorkshire, several of his former cabinet members have lost their seats, including Penny Mordaunt, Grant Shapps and Michael Gove.
The Lib Dems won a total of 71 seats — 63 more than the last general election — while the Green Party won three additional seats, taking its final count to four.
Despite having the third highest vote share, Reform UK managed to snag only four seats, with party leader Nigel Farage returning to parliament after winning the Clacton constituency.
Labour’s party manifesto, ‘Change’, promised several initiatives for the UK rental market, including the abolition of section 21 evictions to protect tenants from arbitrary evictions.
The document also outlined the party’s intention to raise standards for the PRS, which it aims to achieve through the implementation of Awaab’s Law to private tenure, and reintroducing minimum energy efficiency requirements for private rented homes to be implemented by 2030.
Moreover, Labour promised in its manifesto to prevent private renters from being exploited and discriminated against, and give tenants more power to contest ‘unreasonable rent increases’ — however, no specific measures were outlined.
Allison Thompson, national lettings managing director at Leaders Romans Group, said: "Labour's victory in the general election marks a significant turning point for the PRS.
“With their ambitious plans for housing reform, it is crucial that the new government addresses the pressing issues facing both landlords and tenants.”
Allison stated the new government must “place housing at the heart of its agenda”, and must address several points, including energy efficiency requirements for the PRS, the undersupply of rental properties, and the need for clear commitments on capital gains tax.
“Fiscal reform must be a priority — the current tax regime has already driven too many landlords out of the PRS due to increased taxes and additional regulations,” she added.
“Property lets are the only businesses in the UK that do not have taxes offset. To ensure a stable and thriving rental market, taxation must be reassessed to level the playing field.”
“The role of the PRS in addressing homelessness also cannot be overstated — with a growing deficit in affordable homes, the PRS is pivotal in providing homes for those in need.
“Labour must shift its focus from penalising rogue landlords to supporting and encouraging fair and honest landlords who contribute positively to the housing sector.
“We urge the new government to place housing at the heart of its agenda, providing the consistency and long-term focus that the sector desperately needs.
“The PRS is integral to solving the housing crisis, and we look forward to working with Labour to ensure that all aspects of the housing market are effectively addressed."
Oli Sherlock, managing director of insurance at Goodlord, commented: “The new government has a hell of a job on its hands.
“While their attention will be pulled in many directions, housing policy deserves to be high on the agenda; we’ve had over a decade of stagnation on housing, now is the time for action.
“Firstly, we need a credible, rapidly implemented plan for housebuilding — the lack of new private and social homes being built is at the very crux of our housing crisis.
“Housebuilding doesn't happen overnight, meaning we have no time to waste if we want current pressures to abate within a reasonable timeline.
“Alongside this, the new government must give the market clarity on what’s happening with renters’ reform. If similar legislation to the previous bill is set to go through, we need clear information on details and timelines.
“The election-induced delay is also an opportunity to ensure concerns around section 21 and court backlogs are effectively addressed, before legislation hits the statute books.
“Lastly, we need consistency of leadership. This isn’t Premiership football, we can’t afford to have another merry-go-round of housing ministers — the sector is far too fragile.
“Long-term planning, consistent leadership, and clarity over details is what the market is calling out for as we enter this new chapter.”
Mark Chick, director of the Association of Leasehold Enfranchisement Practitioners (ALEP), stated that Labour’s win could bring a more vigorous programme of reform in the residential leasehold sector.
“During the next five years we are likely to see the acceleration of commonhold and possibly legislation to end or put a sunset date on leasehold for new properties.
“It will be interesting to see what Labour chooses to do with the commonhold project, and I expect we will now find out what other drafting has been done by DLUHC in relation to the law commission’s original reports and recommendations.
“In addition, we can presumably expect the current reforms in the Leasehold and Freehold Reform Act 2024 to be brought into effect and the question now turns to the timing of these and secondary legislation.
“ALEP remains ready to engage with government and we look forward to meeting with the new secretary of state for housing and ministers to continue our programme of engagement to help ensure that any new legislation is fit for purpose.”
Lauren Hughes, head of customer success at Vouch, agreed that housing should be at the heart of the new government’s agenda.
“So many other areas of public policy — health, education, productivity, growth, immigration — are made far more challenging by our current housing crisis. Fix housing and vast benefits are unlocked for the nation.
"The UK needs more private and social housing built as soon as possible, alongside incentives to boost the rental market, clearer rules to support tenants and landlords, and far more clarity and consistency over what the future looks like.
“It’s a big challenge, but we can’t afford to kick the housing can down the road any longer.”
Karl Wilkinson, CEO at Access Financial Services, stated: “With the Labour win, some landlords will be reconsidering their options.
"Labour said they will immediately ban section 21 no-fault evictions, which could push portfolio landlords out of the BTL market, resulting in rental accommodation becoming even more scarce and expensive.
“That said, Labour’s ambitious house-building plans are good news for landlords, especially if it increases the supply of affordable social housing so that low-income households don’t have to rely on the PRS.”
