A million tenants could lose their rental properties as a result of
Labour’s policies, predicts Belvoir
Belvoir, one of the UK’s largest property management
agencies, predicts that Labour’s pledge to introduce new anti-landlord rental policies
could result in up to a million tenants losing their rental properties.
We are by no means a political business here at Belvoir, but when a blatant policy decision is set to effect the lettings industry is such a drastic way, we feel compelled to communicate it to our clients, tenants & friends to ensure they understand the implications of their voting actions.
“I am shocked at Ed Miliband’s proposals and his decision
to ignore industry experts who have issued dire warnings about the
unprecedented suffering that his party’s policies are likely to cause to
tenants,” says Phil Pinkney, Belvoir Andover Director.
“Under a Labour Government, landlords will be forced to
commit to three-year tenancies and banned from raising rents above inflation.
You don’t have to be a mathematician or property expert to work out how deeply
flawed these policies are.
“There are currently eleven million people renting property
in the UK, which amounts to about 20% of the population and includes 1.5
million families with children. There are around four million rental properties
available and if just 10-15% of landlords decide to withdraw from the rental
market because they are uncomfortable with Labour’s proposals and feel unable
to manage their risks – particularly when mortgage rates rise - these homes
will no longer be available.
“I would like to know where Ed Miliband suggests these
tenants should live? These tenants will either become homeless or face the
appalling consequences of having to move in with family and friends on a
long-term basis.
“Looking at housing proposals for new builds from all the
main parties, the most that any party has pledged is 300,000 properties in the
next five years and clearly this figure will not even begin to satisfy current demand,
which is the reason that we’re facing a housing shortage.
“We should not forget that it was the Labour Government’s
incompetence that contributed to the financial crisis of 2007 and 2008, which
resulted in a credit crunch that has left millions of people unable to obtain
mortgages or save for a deposit to buy their own home. It is therefore very
shortsighted and totally irresponsible of Labour to introduce policies that
will drastically reduce the number of available rental properties.
“Landlords are very tired of being made to look like
criminals who are constantly looking to rip off tenants and provide low quality
housing. In our experience, 99.9% of landlords are decent people that provide
decent housing for tenants on a long-term basis. Belvoir’s rental index
confirms that in most parts of the country there has not been the major rental
increases that Ed Miliband speaks of. However, if we look back over the past
five to ten years and apply Labour’s proposed inflation rule for rental
increases to many parts of the UK then tenants would indeed be paying much
higher rents than they are today.
“Labour’s proposals are full of loopholes and have clearly
not been thought through, but merely put forward as a way to attract votes. One
thing is certain - Labour’s policies will not raise standards or increase
tenant security. They are likely to cause a housing crisis that will result in
millions of people left with nowhere to call home.”
If you too feel strongly about the above, make sure you vote with your feet and get to a polling station near you and vote against a Labour government.
