A recent survey conducted by Foxtons has shown that the outcome of the General Election will have minimal impact on landlords’ decisions regarding their property portfolios. The survey’s findings suggest that the majority of landlords are unlikely to change their strategies regardless of which party wins the election.
The survey, encompassing responses from over 1,000 landlords within Foxtons’ 28,000-property portfolio, sought to gauge the potential impact of the election on landlords’ operations. Results indicated that 59% of landlords believed a new Labour government would not affect their portfolio plans, with this figure increasing to 76% if the Conservatives were victorious.
Landlords expressed a general scepticism towards the major political parties’ support for the private rental sector (PRS). Only 9% of respondents strongly agreed that the Conservative Party supported the PRS, with 28% slightly agreeing. The Labour Party received lower support, with just 7% strongly agreeing and 14% slightly agreeing that it backed the PRS.
Voting intentions among landlords were significantly influenced by policies affecting the private rented sector. Approximately 37% of respondents deemed these policies very important, while another 37% considered them somewhat important. Conversely, 15% viewed them as not very important, and 11% felt they had no impact on their voting decisions.
The survey also highlighted concerns regarding potential legislation against market rents, with 63% of landlords believing such measures would adversely affect their financial calculations. This posed potential disruptions for their operations.
In terms of policy priorities, landlords identified increasing the supply of social housing as paramount, with 30% ranking it as the most crucial change needed in the PRS. Reforming land development was seen as the least important.
Gareth Atkins, managing director of lettings at Foxtons, commented on the survey’s implications: “The upcoming election is set to have a significant impact on the private rental sector, with landlords closely monitoring party policies and their potential effects. Our survey indicates that a considerable number of landlords are concerned about the implications of legislating against market rent, with the majority thinking it could disrupt landlord calculations.
“Overall, it appears that most landlords will not be altering their approach to investing in, owning, and renting their properties. This stability should be reassuring for tenants, suggesting that landlords will not be making a mass exodus from the market after the election, irrespective of the result.”