Now, zoom out to the regulatory burden, a beast fed by both parties. The Tories kicked it off with gusto. In 2015, George Osborne slashed mortgage interest relief, fully phasing it out by 2020, landlords could no longer deduct full interest from taxable income, effectively hiking taxes by up to 20% for higher-rate payers. Add the 2016 3% stamp duty land tax (SDLT) surcharge on buy-to-lets, which cooled purchases by 10-15% per industry estimates. EPC rules tightened too: from 2018, rentals needed at least an E rating, with fines for non-compliance; by 2025, proposals aimed for C by 2030, costing landlords £8,000-£15,000 per property in upgrades. Right to Rent, introduced in 2014 and expanded, mandated immigration checks with £3,000 fines per illegal tenant. The 2019 promise to scrap Section 21 evictions lingered unresolved until Labour grabbed the baton, but it fuelled uncertainty, prompting a landlord sell-off wave.
Labour, far from easing the pain, has doubled down. The Renters’ Rights Act 2025, royal assent in October, bans Section 21 outright (implementation mid-2026), mandates periodic tenancies, and limits rent hikes to once yearly at market rates—with challenges via tribunals. Pets can’t be unreasonably refused, and bidding wars are outlawed. Selective licensing proliferates: councils like Southwark charge £600-£750 per property for five years, with paperwork galore. Fines for breaches? Up to £30,000, as Reeves learned. Right to Rent enforcement has “rocketed” under Labour, with penalties hitting £4.2m recently versus £596k pre-election, a 600%+ spike, per Home Office data. No wonder a 2025 Landlord Today survey cited “political pressure” as a top exit reason for 40% of landlords.
Impacts? Catastrophic for small players.
Government passes law requiring all landlords to shit gold bars and give them to their tenants.
Headline “Greedy landlords abandoning properties. Massive shortage of housing”.
I would not want to be a rental-property fire insurer in that environment.
I left engineering when the realization struck that I was spending over 50% of my time dealing with regulatory paperwork.
A sudden recollection: One of my father’s colleagues owned a couple rental properties. He’d complain endlessly about the tenants and the city/county/state rules. Back in 1968.
Fred IV: My great aunt was forced to sell her modest rooms after the 1920s Rent Act made it impossible to charge enough to keep them maintained.