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UK General Election: How It Will Impact The Property Sector

Jul 1st 2024

With the upcoming UK general election taking place on the 4th of July, it’s undoubtedly stirring up significant interest and concern for those within the property sector. 

As the different political parties outline their policies and release their manifestos, landlords and investors are watching to understand how the results could impact their investments, rental incomes and overall property management strategies.

If you’re keen to gain more of an understanding about some of the potential changes and impacts on the property sector with the imminent general election, take a read of our article! 

how the UK general election is impacting landlords

Major UK Party Manifestos 

Ahead of the upcoming general election, we would advise you to take a read of the major political party manifestos, to get to grips with the key policies each party has promised. 

For example, The Labour Party have set out within their manifesto that they will aim to build 1.5 million homes and build a new generation of towns. 

The Conservative party on the other hand have proposed within their manifesto that they will introduce two-year temporary Capital Gains Tax relief for landlords who sell to existing tenants. 

uk party manifestos election

Key Policy Changes and Their Potential Impacts

In this next section, we will be highlighting the key policy changes and their potential impacts on those within the UK property market. 

Several political parties are proposing stronger protections for tenants, and are considering policies to cap rent increases. Whilst this may provide stability for tenants, it might limit rental income for UK landlords. 

Another key policy change which could come into play depending on the result of the upcoming general election is longer tenancy agreements. Such proposals for longer minimum tenancy periods could provide security for tenants, however, they would reduce flexibility for landlords to adjust rental terms. 

What other key changes could be implemented? Increased regulations around property maintenance, energy efficiency standards, and tenant rights could mean more compliance requirements for landlords, and is a possibility dependent on the political party elected. 

Tax policies are always a hot topic during elections, and the property sector is no exception. Potential changes which could come into play after the election result include adjustments to Capital Gains Tax rates or exemptions could impact landlords planning to sell properties. 

In addition to this, changes to Stamp Duty Land Tax could affect property transactions, particularly in high value locations. Alterations to how rental income is taxed may also influence landlords profitability and investment strategies. 

Policies which are aimed at increasing housing supply could also impact the property market. For example, government incentives for new builds could increase competition for existing rental properties, potentially affecting rental demand. Whilst policies promoting affordable housing could influence rental rates and property values. 

key policy changes general election

Next Steps For Landlords 

With potential changes possibly impacting landlords across the UK depending on the election results, it’s crucial that you stay informed and ahead of the game.

One of our most crucial tips would be to review your portfolio to assess how potential regulatory or tax changes may impact your properties and rental income. 

We would also suggest for you to keep up to date with the latest election news and read each political party’s manifesto to fully understand the proposed policies. 

Lastly, we would also suggest that you seek professional advice from experts within the industry, to help you navigate any changes effectively and ensure compliance with any new regulations. 

tips for landlords uk general election

If you have questions about how the upcoming election may affect your investments, our dedicated team of property experts at X1 are here to help you. 

We are able to provide tailored advice and support to help you manage and optimise your property portfolio during these uncertain times, and you can reach out to us via hello@X1management.com

Read next: Savills’ Forecast Signals Prime Investment Opportunity in Manchester and the North West Property Market.

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