Andy Burnham: What does new PM mean for landlords?

Rent controls, landlord licensing, more regulation… Andy Burnham’s calls over the years make for bleak reading. Housing has always  been an issue close to the new Prime Minister’s heart, but calls on the campaign trail don’t always translate into solid policy positions. With that in mind, what exactly can we expect to see now he has his feet under the table in number 10?

In terms of ethos, Burnham has long argued quality housing should be a human right in the same way as health and education, and that poor quality housing can have a negative impact on physical and mental wellbeing.

There is little to disagree with here.

We all believe safe and secure homes, of all tenures, are vital when it comes to improving outcomes across the board, and as keynote speaker at our 2024 landlord conference, Andy Burnham acknowledged that a vibrant private rented sector is a vital part of the housing market.

Committing to ‘the ‘biggest council house building programme since the end of the Second World War’, like us he agrees that this country needs more homes of all tenures to tackle the chronic housing supply crisis.

Rent controls

One area where we do disagree, however, is on the subject of rent controls.

Labour – for a number of years now – has agreed with us, rejecting rent controls on the basis of categoric domestic and international evidence that they simply don’t work.

Back in 2016, as mayoral candidate, Andy Burnham pledged to ‘seek powers to regulate rent increases and property standards’ if elected.

Fast-forward to February 2023, and he signed an open letter to government calling for an immediate freeze on private sector rents until the cost-of-living crisis was over.

In his first speech as Labour leader on Friday, he described the sell-off of council homes as leaving ‘the country chasing rents in the private rented sector through the benefits system’.

He went on to make reference to investing in ‘prevention’, though stopped short of making any firm policy pledges.

There are a number of possibilities; that he could introduce a national rent freeze or system of controls, or, in line with his views on devolution – which he reiterated on Friday – give regional mayors greater freedom to make their own decisions.

Neither of these are good news – for landlords or tenants – and we will continue to make the argument that rent controls, regardless of their nature, only ever result in reduced options for tenants and lower housing standards, something that goes against all that he stands for.

We will keep you updated on our progress.

Licensing

Burnham is an advocate for landlord licensing and, again during his 2016 Mayoral campaign blamed Westminster for creating an ‘unregulated private rented sector’ – something we know to be a nonsense.

More recently has also criticised the immigration system for placing vulnerable asylum seekers in ‘poorly managed HMOs’. We understand his comments about ‘HMO Britain’ refer to a specific subsection of the HMO market, and this is something we could expect to see movement on, not least as the new PM has consistently argued for more local or devolved tools to regulate the PRS, especially when it comes to licensing and property standards,

He has also advocated for a ‘three warnings and you’re out’ approach for landlords failing to provide good quality housing, proposing the Government use compulsory purchase orders to buy up homes where landlords are refusing to bring them to standard.

Good Landlord Charter

Of course, it would be impossible to discuss the new Prime Minister without talking about his Greater Manchester Good Landlord Charter, set up during his tenure as the Metro Mayor.

Launching the voluntary scheme in 2024 in a bid to drive up housing conditions across the region, he proposed ‘a complete re-wiring of the system to put power in the hands of tenants’.We, like you,  know that the overwhelming majority of landlords are committed to providing good quality compliant homes, which is why we agreed to sit on the Charter board, to ensure landlords’ voices are heard.

What are we likely to see?

Having worked closely with the new PM it is clear he has a personal, and seemingly genuine, interest in housing and property standards.

He also demonstrates a pragmatism and, dare I say it, a flexibility in terms of his approach.

So, in response to the original question, what can we expect to see next?

In Manchester Burnham’s powers were limited and I don’t doubt that going forward his policies may well be more ambitious, and more interventionist than previous leaders.

The proof will be in the pudding, but, rest assured we will continue to represent your interests Westminster and beyond when Parliament returns after the summer recess.

In the meantime, I have written to the new PM and his team outlining our vision for the PRS for the future, and how we can work together to achieve it in a way that works for landlords and tenants.

Watch the video

Watch Andy Burnham thank our chief policy officer Chris Norris for suggesting the Manchester Good Landlord Charter offer cash incentives to landlords to to carry out energy efficiency works (below). The new Prime Minister said the suggestion stuck in his mind - and was the right thing to so when announcing a localised funding package.

You can also watch his address to our 2024 annual conference here.

Photo credit: @houseofcommons