A recent survey by Foxtons has shown that the general election will have little effect on landlords’ decisions to grow or sell their property portfolios. Conducted on the eve of the election, the survey gathered responses from over 1,000 landlords within Foxtons’ 28,000-strong property portfolio.
Election Outcome Irrelevant for Most Landlords
According to the survey, nearly 59% of landlords believe a Labour victory would not influence their decision on whether to expand or sell their portfolios. This sentiment increases to 76% among those who expect a Conservative win. Gareth Atkins, Managing Director of Lettings at Foxtons, commented: “Our survey indicates that a considerable number of landlords are concerned about the implications of legislating against market rent with the majority of landlords thinking it will have the potential to disrupt landlord calculations.”
Political Support for Private Rented Sector Lacking
The survey also highlighted landlords’ perceptions of political party support for the private rented sector (PRS). Only 9% of respondents strongly believe the Conservative Party supports the PRS, with 28% slightly agreeing. Labour fared worse, with just 7% strongly agreeing and 14% slightly agreeing that the party supports the PRS. Atkins noted, “The upcoming election is set to have a significant impact on the private rental sector, with landlords closely monitoring party policies and their potential effects.”
Policies on Market Rents a Major Concern
One of the key findings from the survey was that 63% of landlords are worried that legislation against market rents could negatively impact their financial calculations. When asked about desired changes in the PRS, 30% of landlords ranked increasing the supply of social housing as most important to reduce reliance on the PRS by low-income and homeless households. In contrast, reforms to land developments were deemed least important.
Regarding voting intentions, 37% of landlords stated that policies towards the PRS are very important in influencing their vote, with another 37% considering them somewhat important. Conversely, 15% viewed these policies as not very important, and 11% said they have no impact on their voting decisions.
Stable Future for Landlords and Tenants
Despite concerns about potential new legislation, the survey suggests that most landlords will maintain their current investment strategies. Atkins summarised, “Overall, it seems that most landlords will not be altering their approach to investing in, owning and renting their properties. This should also be seen as most welcome from the point of view of tenants too in that it is unlikely that landlords will be running for the exits on Friday – no matter what happens.”
The findings of this survey provide a reassuring outlook for both landlords and tenants, indicating a period of stability in the PRS regardless of the election results.
