Despite winning the largest number of seats in parliament since 1997, Labour is confronted by growing public discontent. The most recent Ipsos poll revealed that Prime Minister Kier Starmer’s approval rating has dropped from 36% in July to 26% in November, one of the sharpest post-election approval declines since 1945.
Of all the voting groups making up the British electorate, landlords are, on average, the most pessimistic about the latest set of policies Labour is pursuing. A quote encapsulating the frustration landlords are currently feeling towards Labour is an anonymous landlord remarking ‘where is the incentive to invest?’
To understand why landlords are becoming increasingly vocal against Labour’s housing policies, let’s examine the causes behind this reception.
How are Landlords Currently Feeling?
Situated alongside the Ipsos poll is the most recent Landbay survey, the results of which showcase the lack of confidence landlords have towards Labour. An alarming 80% of landlords who voted for Labour in the 2024 general election would not have voted for the party if they had known what Labour would do once in power. In turn, the survey recorded that 63% of landlords are unimpressed with Labour’s current housing strategy.
This isn’t good news for Labour, a party which has emphasised reinvigorating the property market as a core policy objective.
This concern is informing the decision of some landlords to reduce their rental portfolios. The National Residential Landlords Association reported that 19% of landlords in Wales and England have sold property over the past year. Crucially, 41% of landlords plan on selling some rental property over the next 12 months, a prospect which the Telegraph ominously referred to as the looming ‘landlord exodus’ expected to come.
Although agencies such as Foxtons and BuyAssociation Group contend with the extent to which this trend can be characterised as an exodus, it is an important indicator that some landlords are not confident with how Labour is guiding the property market.
The situation cannot go unaddressed. Paul Shamplina, founder of Landlord Action, commented that ‘without landlords, the private rental sector collapses. As more landlords exit, rents will rise, and housing will become scarcer, ultimately harming tenants.’ It is therefore important to examine why landlords feel compelled to reduce their property portfolios in light of expectations surrounding the property market.
What is Informing Labour’s Current Reception?
Several decisions and pledges Labour has undertaken have stoked concern among landlords regarding the future performance of the property market. A primary example is the several provisions of the Renters’ Rights Bill – some among which include abolishing Section 21 evictions, limiting the extent to which rents can be increased, and constraining bidding wars between potential tenants.
In a scathing critique of the Government, Doug Shephard, director of Home.co.uk, commented that the ‘Renters’ Rights Bill will not improve the lives of tenants; more likely, it will worsen their plight. It is in fact an attack on landlords’ fundamental property rights and therefore an attack on the entire UK property market.’ To a large extent, this evaluation characterises much of the trepidation regarding the agency landlords will wield over their properties in the future.
Unfortunately, this feeling has been exacerbated by Labour’s recent decision to lower the threshold of stamp duties in April 2025 to £125,000 for those who are not first-time buyers. What this effectively means is that landlords will have to set aside additional revenue to purchase property, thereby erecting an additional barrier which discourages landlords from expanding their property portfolios.
According to Tim Bannister, property expert for Rightmove, ‘increasing stamp duty on additional home purchases means that, based on the average asking price for a home, a landlord could face an additional charge of more than £7,000 from tomorrow.’
The combination of these two sets of policies has laid the foundation for what Nigel Lewis, property editor for LandlordZONE, called a ‘turbulent and potentially very costly ride’ for landlords.
These policies do not inspire much optimism. They inhibit landlords from participating in the property market and therefore contribute towards the feeling that Labour does not have the best interests of landlords in mind.
Can This Feeling Change?
Right now, five months into the Labour premiership, Labour has not started well for landlords. That is seen in the aforementioned Ipsos poll. Yet there is still time for Labour to recognise these concerns and effectively address them. For if Labour is steadfast in its commitment to drive growth in the property market, it is crucial to ensure that landlords can play an active, productive role in the market.
Not all is gloom. Rightmove forecasts a generally positive snapshot of a productive 2025 for the property industry between gradually lowered mortgage rates, higher consumer demand, and a more stable economic environment. This is especially the case for London, which has stagnated relative to other parts of the country over this current decade.
Despite the issues landlords are going to confront, the time is still there for Labour to implement a strategy that will address these concerns.
