Labour Targets Landlords with New Policy Shifts

Ministers want to make life difficult for buy-to-let landlords and deliberately target policies to disrupt the private rental market.

Exchequer Secretary James Murray has indiscreetly revealed Labour’s secret plans to squeeze landlords and second-home owners out of the market.

The revelation came when he answered a written question from Sarah Owen (Labour, Luton North) about the government's plans to support first-time homebuyers.

Murray said: “At Autumn Budget 2024, the higher rates of Stamp Duty Land Tax for additional dwellings were increased by two percentage points from 3 per cent to 5 per cent.

This measure will ensure that those looking to move home or purchase their first property have a greater advantage over second home buyers, landlords, and companies purchasing residential property.”

Tsunami of regulation

“The Office for Budget Responsibility certified costing estimates that increasing the rates of SDLT by two percentage points is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence.”

Since Tory George Osborne became Chancellor in May 2010, private landlords have been subjected to a tsunami of regulation and tax changes that have reduced buy-to-let business profits.

The Tories and now Labour suspect landlords hold sway in an uneven balance of power with their tenants.

The newly released and in-depth IPSOS Housing Monitor confirmed the suspicion, analysing attitudes to housing and house prices from 23,000 renters in 30 countries. IPSOS is a global market research company and consultancy based in Paris.

Unhappy renters

The survey reveals 47 per cent of renters are content with their living arrangements, compared to 71 per cent of homeowners.

The report adds:

• 70 per cent of under 35s believe their parents had an easier time buying a home
• One in five renters and homeowners feel rising house prices are good for them
• 52 per cent of those asked think housing policy is on the wrong track
• Value for money and a good location are important to buyers and renters. Other key factors include low crime rates, nearby public transport links, and good local infrastructure.

The IPSOS report says: “Almost three-quarters of people (73 per cent) say owning a home is an aspiration for most people in their country; 60 per cent say it’s hard to feel secure without this. We see evidence that ownership provides some security, with renters seemingly facing a more challenging housing situation than homeowners.

“Seven in ten homeowners (69 per cent, both those paying a mortgage and those who own their home outright) say they’re happy with their housing situation compared with just one in two renters (47 per cent).

“Homeowners are also much less concerned about housing costs now and in the future. Although seven in ten renters (71 per cent) say they’d like to be able to own their own home, over half (56 per cent) – and a majority in 21 of 29 countries surveyed - don’t believe they’ll ever be able to afford one.”

Read the full IPSOS report