Member Article

The Labour Party tenancy concept

A promise to introduce a new tenancy concept and rent control if the Labour party win the election would offer tenants more rights – but according to property expert, Andrew Mear, would mean more restrictions for landlords.

“On the face of it the Labour party’s proposal to radically overhaul tenancy agreements may seem like a good idea, giving tenants more security. But if we look deeper, it is clear that these ideas are ultimately flawed and set to cause major problems for the rental market.

The new policy will make three year instead of 12 month leases ‘the norm’, put greater restrictions on rent increases and ban charging letting agency fees to the tenant.

In reality this will make it an incredibly difficult process for any landlord to evict a tenant who refuses to pay rent and won’t leave the property. The Labour proposal is likely to encourage and increase the already very high numbers that are already doing this.

For many people, renting is the only viable option and it is an extremely popular way of life in many parts of Europe. Among the major benefits of renting are that it allows people to live in areas where they may not be able to buy a house; it can offer a short term solution when saving to buy; and you don’t need to apply for a mortgage and have a huge deposit. On the flip side, paying rent is often considered dead money.

Although the rental property market leans in favour of tenants, it is often viewed through rose tinted glasses where the assumption is that being a landlord is seen as a positive position to be in. However, this can be far from reality. The stress involved can be great and I would guess that nearly every landlord in the UK will be able to tell stories of tenants who have caused massive problems to domestic and commercial properties. Examples include not paying the rent; property damage; stolen appliances; unpaid utility bills; subletting and many more. And because of restrictions and tenant rights, there isn’t a lot landlords can do about it!

Any sensible landlord will look after their tenants and, in many cases, won’t increase the rent for the whole duration of their time at a property. It makes sense to keep the rent the same and have a tenant stay in the property for longer rather than having high tenancy turnover at greater rates – this is less time consuming and reduces agency fees.

There has been an argument over the past couple of years that landlords constantly increase rent prices which the Labour party has used as a key point in its argument. However it is actually market forces which dictate the cost of rent, and in many cases, the ability to make rent rises are not justifiable.

So it’s incredibly distressing to see how Labour is pushing a one-sided policy with no respect for the hardworking people who have bought and manage a property, providing a nice flexible living environment for someone who can’t or doesn’t want to buy. Why as landlords should we be the ones that have to make all the sacrifices?“

Andrew Mear is the md of property development company, Eagerlux Ltd. His portfolio includes a selection of historical buildings, including Skipton’s medieval High Corn Mill, www.highcornmill.co.uk

This was posted in Bdaily's Members' News section by High Corn Mill .