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The UK General Election set for July 4th 2024 has significant implications for the future of the Renters (Reform) Bill and Leicestershire’s commercial and residential property market. With key aspects such as tenancy rules, eviction grounds, mortgage rates, house prices and taxation at stake, the future of renting or buying property in counties like Leicestershire hangs in the balance. Read on to find out what implications to expect from key members of our team following the upcoming election.
Implications of the UK General Election on the Renters (Reform) Bill
What is the Renters (Reform) Bill?
The Renters (Reform) Bill was initially introduced in May 2023 and has since undergone numerous discussions and amendments. The Bill aimed to abolish Section 21 “no-fault” evictions, which currently allows landlords to evict tenants without providing a reason. Instead, it proposed the introduction of rolling periodic tenancies and new possession grounds that would make it easier for landlords to evict tenants who violate their tenancy agreements.
Additionally, the Bill sought to introduce a national landlord register, new rules for rent increases, and a property portal to help tenants make informed decisions. It also included provisions for more stringent eviction processes, new redress schemes, and regulations for tenants wishing to keep pets.
What will happen to the Renters (Reform) Bill post-election?
Our Managing Director, Will Ravenhill, shared the following thoughts on what he feels will happen with rental reform post-election:
“It looks as if the Renters (Reform) Bill has now been scrapped, due to not making it through the Parliamentary process before the snap election was called. However, IF the Conservatives win the next election (and it’s obviously a big if!) it may well see the light of day again in the next Parliament. However, the main architect of the Bill, Michael Gove, has announced that he won’t be standing at the next election, which may impact whether the bill is introduced again.
However, before landlords breathe a sigh of relief, they should prepare for the fact that the Labour Party will undoubtedly introduce similar legislation, which may well be more pro-tenant than the proposed Conservative legislation!”
If you are a tenant or landlord in Leicestershire looking for expert advice, get in touch with our Lettings team at Readings who will be able to advise you further.
Impact of the General Election on the UK and Leicestershire’s Residential Property Market
Our Sales Director, Sean Rushton, stated the following:
“Over the past four years, home-movers have faced numerous challenges, including a global pandemic, a housing shortage, and fluctuating prices.
In Leicestershire, the property market has been gradually gaining momentum over the last couple of months. This positive trend follows a period of slowdown, primarily due to rising mortgage rates that cooled market activity as potential buyers adjusted to higher borrowing costs. Despite this, the overall impact on the market has been relatively contained, and as rates stabilise, buyer confidence is likely to return.
Looking ahead, the general election on 4th July introduces a degree of uncertainty, but historical patterns provide a reassuring outlook. Past elections have shown that the property market tends to remain resilient. In fact, depending on the election outcome, there is often an uptick in prices post-election and they generally rise in the 12 months following. This is partly due to increased consumer confidence once the political landscape is clarified. Moreover, any policy changes or initiatives introduced by the new government could have a positive impact on the housing market, if the new government focus on addressing housing supply and affordability. This pattern suggests that we may be poised for a robust summer market once the election is behind us, particularly if interest rates begin to fall.
While the property market has faced its share of challenges over the past few years, the outlook for the remainder of this year is optimistic. With gradual increases in house prices, coupled with a steadier market environment, sets a positive tone. The upcoming general election is not expected to derail this momentum, in fact, it could act as a catalyst for further growth”.
If you are looking to buy or sell this year in Leicestershire, contact our team at Readings for further advice and guidance.
Impact of the UK General Election on Commercial Property in Leicestershire
Hassan Gaffer, our Senior Commercial Surveyor, provided the following insights:
“Looking ahead, the UK General Election on July 4th, 2024, carries significant implications for rental reforms and Leicestershire’s residential and commercial property market. Despite potential shifts in government and policies, Leicestershire’s property market shows resilience, poised for potential growth post-election”.
At Readings Property Group, we are well equipped and experienced to give sound advice in order to help you make a decision in relation to commercial property matters. Get in touch with our team for support.
Looking Forward
Looking ahead, the UK General Election on July 4th 2024, carries significant implications for rental reforms and Leicestershire’s residential and commercial property market. Despite potential shifts in government and policies, Leicestershire’s property market shows resilience, poised for potential growth post-election.
Whether navigating residential rentals, property investments, or commercial ventures, staying informed and seeking expert advice remains crucial in adapting to forthcoming changes and opportunities in Leicestershire’s dynamic property landscape.
