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TODAY'S OTHER NEWS

Which political party has been best for landlords and tenants?

As a general election surely looms, Benham and Reeves has undertaken some research that could potentially help you decide who to vote for. 

The independent letting and sales agent in London has looked at which political party has had the most impact on the UK rental market and which way you might want to be voting as a landlord if there is indeed an election in the coming weeks and months. 

The company looked at the average rental cost across England between the joint tenure of Labour’s Tony Blair and Gordon Brown between 1997 and 2009 and during the more recent reign of Tory duo, David Cameron and Thersa May.

The Tories have seen the highest average rent during their time in power at £767 per month. This is an increase of £218 or 34.1% on the average monthly rent between 2010 and 2019 - a 3.4% jump each year. 

When splitting it between Cameron and May, the former presided over the greatest hike in rents of both Tory leaders. 

In Cameron’s six years in charge, the average rent was £717 per month and increased a total of 23.1%, an average of 3.9% per year. 

On the other hand, rents under Theresa did average £848 per month but only increased by 2.3% in her four years which is just 0.6% a year on average. Great for tenants for sure. But for landlords? Not so much, in Benham and Reeves’ opinion.  

On the face of it, Labour’s time in power was far more tenant-friendly with the average monthly rent hitting just £437 over the 13 years since Tony Blair took over in 1997. However, when looking at the growth of rents during this time the figures tell an entirely different story.

When Labour came into power, the average monthly rent was £334 per month but by the time Gordon Brown left Number 10 this had soared by 86.9% to £624 per month. That’s an increase of £290 per month and an average yearly hike of 6.7%. 

While Blair oversaw a rental increase of 39.67% in nine years, this averages out at 4.4% a year, while Brown’s rental increase of 28.8% averages out at a huge 7.2% during his four years.

The resaerch also shows that yields have dropped during the time both parties were in power due to almost continuous property price growth, averaging 4.5% per year under both Labour and the Conservatives.

Blair oversaw the largest average yearly yield at 4.9%.

Marc von Grundherr, director of Benham and Reeves, said: “Probably not the first criteria that you would consider when deciding on your political allegiance but politics and a party’s housing plans can have a big impact on issues of supply and affordability within the rental market, so who you vote for could very well impact upon your personal living arrangements.

“We’re not taking sides either way, but on the face of it, Labour has been the most questionable party in power if you're a tenant struggling with rent affordability, while in terms of investing in the buy-to-let sector, flip a coin as they’re all as mediocre as each other really.”

Rents

Government

Period

Average Rent During Tenure

Total Change (%)

Yearly Rental Increase (%)

Labour

1997-2009

£437

86.9%

6.7%

Conservative

2010-2019

£767

34.1%

3.4%

PM

Years as PM

Average Rent During Tenure

Total Change (%)

Yearly Rental Increase (%)

Gordon Brown

4

£564

28.8%

7.2%

Tony Blair

9

£381

39.7%

4.4%

David Cameron

6

£717

23.1%

3.9%

Theresa May

4

£843

2.3%

0.6%

Yields

Government

Period

Average Yield During Tenure

Total Change (%)

Yearly Yield Change (%)

Labour

1997-2009

4.46%

-33.6%

-2.6%

Conservative

2010-2019

4.54%

-2.8%

-0.3%

PM

Years as PM

Average Yield During Tenure

Total Change (%)

Yearly Yield Change (%)

Gordon Brown

4

3.8%

1.2%

0.3%

Tony Blair

9

4.9%

-3.4%

-0.4%

David Cameron

6

4.6%

0.2%

0.0%

Theresa May

4

4.2%

0.2%

0.1%

Government

Prime Minister

Ave Rent (per month)

 

Average House Price

 

Yield %

Year

England

 

Year

England

 

Year

England

Labour

Tony Blair

1997

£334

 

1997

£59,160

 

1997

6.77%

Labour

Tony Blair

1998

£333

 

1998

£64,301

 

1998

6.22%

Labour

Tony Blair

1999

£326

 

1999

£70,070

 

1999

5.59%

Labour

Tony Blair

2000

£344

 

2000

£80,814

 

2000

5.10%

Labour

Tony Blair

2001

£357

 

2001

£90,306

 

2001

4.75%

Labour

Tony Blair

2002

£417

 

2002

£107,981

 

2002

4.63%

Labour

Tony Blair

2003

£422

 

2003

£130,218

 

2003

3.89%

Labour

Tony Blair

2004

£427

 

2004

£152,314

 

2004

3.36%

Labour

Tony Blair

2005

£466

 

2005

£163,570

 

2005

3.42%

Labour

Gordon Brown

2006

£484

 

2006

£174,351

 

2006

3.33%

Labour

Gordon Brown

2007

£536

 

2007

£190,025

 

2007

3.38%

Labour

Gordon Brown

2008

£612

 

2008

£182,379

 

2008

4.03%

Labour

Gordon Brown

2009

£624

 

2009

£166,558

 

2009

4.50%

Labour Average Rent (per month)

£437

 

Labour Average HP

£125,542

 

Labour Average Yield

4.54%

Change growth (1997-2009)

86.9%

 

Change growth (1997-2009)

181.5%

 

Change in yield (1997-2009)

-33.61%

 

 

 

 

 

 

 

 

 

 

Conservative

David Cameron

2010

£640

 

2010

£177,472

 

2010

4.33%

Conservative

David Cameron

2011

£696

 

2011

£175,229

 

2011

4.77%

Conservative

David Cameron

2012

£705

 

2012

£177,488

 

2012

4.77%

Conservative

David Cameron

2013

£728

 

2013

£182,581

 

2013

4.78%

Conservative

David Cameron

2014

£742

 

2014

£197,771

 

2014

4.50%

Conservative

David Cameron

2015

£788

 

2015

£211,174

 

2015

4.48%

Conservative

Theresa May

2016

£839

 

2016

£227,337

 

2016

4.43%

Conservative

Theresa May

2017

£831

 

2017

£238,161

 

2017

4.19%

Conservative

Theresa May

2018

£844

 

2018

£245,065

 

2018

4.13%

Conservative

Boris Johnson

2019

£858

 

2019

£244,882

 

2019

4.20%

Conservative Average Rent (per month)

£767

 

Conservative AverageHP

£207,716

 

Conservative Average Yield

4.46%

Change growth (2011-2019)

34.1%

 

Change growth (2011-2019)

38.0%

 

Change in yield (2011-2019)

-2.84%

Poll: Do you think there will be a general election this year?

PLACE YOUR VOTE BELOW

  • icon

    The research seems only to have addressed rental values, important as this is. But isn't there so much more - e.g. legislation regarding tenancies, housing policy, even whether new tax changes are progressive or regressive - to consider, before votes are cast in a general election? Socially responsible landlords need so much more to go on before entering the voting booth.

    icon

    Hi David.
    Surely, a vote for any party other than Conservative, could mean that we have Corbyn running the country?
    This would be disastrous for all of us, have you seen his proposed policies?
    I expect that rent caps will follow together with a raft of legislation to curb the greedy landlords.

     
  • icon

    all are the same

  • icon

    The conservatives have not been our friends, however that's nothing to what Mr Corbyn would do to us.

    icon

    Exactly.

     
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