In a recent market analysis by Zero Deposit, landlords appear largely untroubled by the potential shift in political power following the upcoming General Election. The majority intend to maintain the size of their buy-to-let (BTL) portfolios regardless of the election’s outcome.
Despite facing a challenging landscape, 82% of landlords have opted to keep their BTL portfolios unchanged under the current Conservative Government. Meanwhile, 10% have downsized their holdings, and a mere 6% have expanded them.
The landscape of the rental market is poised for further upheaval with the impending Rental Reform Bill, notably the proposed ban on Section 21 evictions. However, 27% of landlords speculate that this bill might be abandoned altogether.
Zero Deposit’s findings suggest that a change in political leadership is unlikely to disturb landlords significantly. Should Labour win the General Election, 78% of landlords plan to maintain their current portfolio size. Nonetheless, 19% indicated they would reduce their holdings under a Labour Government—double the number who have downsized under the Conservatives.
Among Labour’s rental market proposals, the most contentious for landlords is the plan to eliminate automatic evictions for tenants in arrears. Other policies landlords view unfavourably include granting renters the right to have pets and mandatory Energy Performance Certificate (EPC) upgrades. Interestingly, the abolishment of Section 21 notices ranks fourth among their concerns, with extended notice periods also featuring prominently.
Sam Reynolds, CEO of Zero Deposit, remarked, “Traditionally, the Conservatives have been perceived as the party of choice for landlords, but recent legislative changes challenge this notion. Despite reduced profitability, most landlords have maintained their portfolios, reflecting resilience amidst existing challenges. It’s not surprising that they remain largely unfazed by a potential change in political leadership.”
Reynolds continued, “The election has inadvertently delayed the most significant rental sector reforms in years. While the fate of the Rental Reform Bill remains uncertain, landlords are understandably sceptical about either party driving substantial improvements in the sector. Notably, while Labour’s commitment to banning Section 21 evictions is significant, it isn’t the primary concern for landlords regarding potential sector changes under the party.”