SHOULD landlords be worried that Jeremy Corbyn is the new leader of the Labour party? The left winger has some clear thoughts on the private rental sector.
Jeremy Corbyn’s election to leader of the Labour party was with a landslide majority of 60% and despite the media and his own party warning he is unelectable, he has already proved the opposite to be true. A lot of what he says is making uncommon sense and resonating with not only party members but members of the public.
Business leaders are mostly keeping their powder dry right now waiting to hear his policies, but one thing is for sure, he will be taxing the wealthy and successful businesses more to pay for community schemes and increase the living wage. He will also be looking to nationalise the energy services and possibly train and banks as well.
His idea for quantitive easing for the people will strike a popular note with the masses as rather than giving money to bankers, who caused the recession, he is talking about providing the money for local projects and community benefit. It all makes uncommon sense and the question I ask is why it’s taken so long for someone to make these proposals. I expect the answer is in the establishment protecting its own interests – the politicians, businessess and wealthy all making sure they get what they want. If Jeremy wins an election, that will all change if he stays true to his beliefs, and there’s no reason to think he won’t.
But what about landlords, of which I am one? He has stated he wants better quality provision, which I do not have a problem with. Rogue landlords are costing us all in reputation and money and need to be rooted out. He’s also said that rent increases and prices should be linked to the local average wage so they are affordable. This has the potential to cause some problems in places like London where house prices are much higher than average wages, but will create a raft of affordable rents. Or a dearth of availability as properties are sold for residential. Outside of London I expect such controls will make little or no difference to landlords who will be charging normal rates anyway.
So overall for landlords, outside of London it could see the end of some rogues which is a good thing. For London landlords it could mean big rent drops, although I feel that some weighting will have to be given to house price index for the local area as well. If not, then the private rental market in London will collapse, it’s as simple as that. Either way, his proposals are far less damaging than the recent tax grab that is being rushed through Parliament by the Conservatives.