Labour has announced a new policy aimed at boosting the rental market, and some experts are hailing it as a potential game-changer.

Simon Gerrard, managing director of Martyn Gerrard Estate Agents in north London, has welcomed Labour’s pledge to build more homes specifically for the rental sector. He believes that the current lack of new homes is a major reason why rents have been rising so dramatically.

A Taxing Situation

Gerrard, a former president of the National Association of Estate Agents (Propertymark), points out that the current tax system has driven many landlords out of the market. This has led to a shortage of rental properties and pushed rents even higher.

“The rental market in the UK has suffered from a dire lack of supply and options for renters,” he explains. “This has been caused by both a lack of new homes being built, and by the tax regime that landlords are currently forced to deal with.”

A Win-Win Scenario?

Gerrard is optimistic about Labour’s plans to create a fairer and more affordable rental market. He believes that this could benefit both landlords and tenants.

“Policy to reign in spiralling rent prices is very welcome, and I hope that this will include reform to the tax regime to encourage landlords back to the market,” Gerrard says. “This will provide more options for renters and allow landlords to offer competitively low rents and avoid charging large upfront guarantees.”

He argues that a more stable rental market would benefit both sides: “Creating an affordable rental market will provide both security to landlords and tenants, as ultimately the ideal situation for both parties is that a tenant is able to reliably pay to live in a comfortable home, and a landlord is not put under pressure to remove a tenant at short notice.”

Quality Homes for Everyone

Labour’s plans also include ensuring that rental properties meet high standards. Gerrard believes that this is crucial: “It is also important that renters in the UK are able to find good quality, comfortable homes which they can afford to run, and so it is pleasing to see the Labour party taking steps to ensure that landlords keep living conditions of rental properties up to a high liveable standard, as well as reducing the strain of bills and running costs for those in the rental sector.”