Labour will regulate lettings because it's a cheap option - claim

Labour is likely to make rental sector reform and regulation a priority - at least partly because it will be low-cost and relatively quick to achieve.

That’s the view of political expert Simon Darby, from communications company PLMR, who was speaking at an election webinar for agents hosted by PropTech giant Reapit|PayProp. 

Darby said: “Looking at the polls it seems likely that we’re looking at a Labour government with either a reasonable majority, or a very big majority. If they do come into post, they’ll be looking at reform and regulation because these are things that can be done that don’t cost the government an enormous amount of money. Tweaks to markets become quite powerful in that environment because they don’t cost billions and can be enacted relatively quickly.

“A government that comes in after 14 years in opposition wants to make headway, and that puts the housing market generally, and the private rented sector in particular, under the spotlight.”

Darby also addressed the claims that a Labour government would abolish Section 21 evictions on Sir Keir Starmer’s first day in office

“The government will still have to go through the entire process. Measures may be in the King’s Speech – there will have to be a period of consultation because it’s a new Bill and then it will have to go through Parliament again. It’s probably going to take a year, perhaps two years, potentially.”

Labour’s proposals to build 1.5 million homes and reform planning laws also can’t happen overnight, as Darby explained.

“This is not the first time that we’ve gone into a general election with something of an arms race on numbers in terms of the level of housing. To achieve the numbers being talked about, the government will need to get planning reforms right, to make it significantly easier to build. Equally, lots of factors remain outside the control of central government when it comes to delivery.”

Labour is committed to growth and sees the planning system as a hindrance to development, adds Darby, commenting: “I would see that area as being one where they are genuinely quite keen to have a fight and have real reform to try and make it easier to push these things through. Where the last government struggled because of grass-roots push-back or concerns from local government, Labour will find it slightly easier because they are willing to have the fight.

“But I can’t see those numbers stacking up without reforming the system and bringing back mandatory targets.”

Meanwhile Darby’s co-host of the webinar is urging agents to lobby their new MPs after tomorrow’s election, whatever the colour of the new government.

Politicians will be in ‘listening mode’ and property professionals will need to make themselves heard just as they did when they lobbied MPs to make changes to the Conservative’s Renters Reform Bill, suggests Neil Cobbold, commercial director of Reapit|PayProp. 

You can watch the recording of the webinar in full here.