Local elections: What happens next?
Following a dramatic day at the polls last week, our public affairs officer Joshua Helm-Cowley examines what the results mean for landlords across England and Wales.
Reform and the Greens were the big winners in last week’s local elections, with the former gaining 1,452 council seats and control of 14 councils and the latter gaining 587 councillors and control of five councils. In stark contrast, Labour and the Conservatives lost out on the day, with Labour losing well over 1,400 councillors and control of 38 councils, while the Conservatives lost control of six councils and more than 560 councillors.
While these results have unleashed another round of political chaos within the Labour Party and Westminster more generally, how could these results affect your property and business?
An uncertain enforcement environment
The UK Government has been clear that effective enforcement of the Renters’ Rights Act will be key to the legislation’s success. However, with NRLA research showing that local authorities are struggling to fulfil their pre-Renters’ Rights responsibilities, there is serious concern that local government will struggle to meet their new responsibilities.
With 31 councils moving from a majority leadership to no overall control these enforcement struggles will only increase, as these local authorities will be unable to pass key business such as budgets, or make spending commitments, without negotiation with other parties.
In a contested area such as housing standards enforcement, these negotiations can often be prolonged and highly contentious. As such, any attempt to increase enforcement capacity is likely to take a backseat while these areas are resolved between parties.
Focus on HMOs
Both Reform and the Greens made houses in multiple occupation (HMOs) and their regulation a big part of their local election campaigns. Reform in particular has been heavily critical of the HMO model and the way such properties are managed, with Reform MPs Lee Anderson and Richard Tice recently making critical comments and blaming “thousands of unscrupulous investors” for their proliferation in many areas.
Existing Reform councils such as Durham have also implemented measures to limit the spread of HMOs across their respective areas, with Durham Council issuing new Article 4 Directions, meaning that any landlord wanting to convert their property into a HMO would need planning permission.
The Greens, instead are arguing social housing is needed to replace HMOs, yet the outcome is likely to be the same, with more restrictive regulation of HMOs likely in areas where these parties were successful.
Rent controls unlikely
Despite rent controls arguably being a central premise of the Greens’ campaign at the local elections, implementation remains highly unlikely.
Currently, central government holds the powers necessary to introduce rent controls, and it made clear its view that rent controls simply don’t work for either tenants or landlords. Crucially, the Government has also refused to devolve these powers to local authorities or mayors to allow local controls in their areas.
Senedd Elections
Elections also took place last week in Wales for the election of a new Senedd. Plaid Cymru won these elections as the largest party, though without an overall majority. You can find out more information on what these results may mean for you here or by watching the video below.
