Article Posted -
16 May 2017
The Labour Party have today (May 16th) launched their manifesto for the 2017 general election. Below is a summary of key pledges which would impact upon landlords and the private rented sector (PRS).
- Unsurprisingly, Labour have not mentioned reviewing or reversing the “Tenant Tax”/Section 24 restriction on mortgage interest relief.
- Conservative plans to reduce corporation tax to 17% by 2020 will be scrapped, and instead will be raised as follows:
- To 21% from 2018-19,
- To 24% from 2019-20, and
- To 26% from 2020-2021
- The lower small-business rate of corporation tax (below £300,000) will be reintroduced and raised as follows:
- To 20% from 2018-19, and
- To 21% from 2020-21.
- Labour will also exclude small businesses (turnover under £85,000) from the Government’s Making Tax Digital scheme, which will mandate digital quarterly reporting.
- Labour will reintroduce the Landlords Energy Saving Allowance (LESA), which has been a key ask of the NLA, in order to incentivise landlords to make energy efficiency improvements in their properties by offsetting the cost against income tax (up to a certain, as yet undefined amount).
Private Rented Sector
- “Improve” upon existing energy efficiency regulations which will already prohibit landlords granting a new or renewed tenancy for properties below an EPC rating of E from April 2018.
- Labour will seek to make three-year tenancies “the norm”, with an inflation cap on rent rises.
- The Mayor of London will be granted extra powers to give London renters additional security.
- Labour will legislate to ban letting agency fees for tenants.
- Labour will “empower tenants” by giving renters new consumer rights:
- Minimum standards – A new legal minimum standard to ensure properties are ‘fit for human habitation.
- Empower tenants to take action if their rented homes are sub-standard.