Ray Boulger: Labour/SNP coalition is the biggest threat to landlords
The biggest threat to landlords is a Labour Party/SNP coalition government, Ray Boulger (pictured), senior technical manager at John Charcol, has claimed.
David Smith, policy director for the Residential Landlords Association, has previously warned that plans announced by the Labour Party to introduce a right to buy scheme if it gains power at the next General Election would “kill off the private rented sector”.
Boulger said: “In terms of risks, it’s difficult to see a Jeremy Corbyn led government getting a majority in a General Election.
“When looking at small risks having a big impact, I’d say the biggest risk to the landlord would be we some sort of Labour SNP coalition.
“I don’t see Labour getting an overall majority. While I think it’s unlikely, if it were to happen I think it would have big implications for the landlord sector.
“SNP is almost as left wing as Labour and one would assume they would comply with lots of Labour’s policies on landlords.
“You’d see lots of landlords fear things like the Right to Buy and being forced to sell their properties at a discount to their tenants.”
Boulger added: “If it were to happen, I think you’d see a significant number of landlords selling up or selecting their tenants in a different way.
“Landlords want good responsible tenants but might change and see value in selecting tenants whose credit rating makes it unlikely for them to buy a property.
“There would be a disincentive for investors to buy new properties and an incentive for existing investors to sell properties before selling them at the lower rate.
“There would be less properties available to rent and that would have the obvious impact of pushing rents up.
“The long-term impact would seriously disrupt the market.”
Boulger’s warning comes amidst political uncertainty in the run up to Brexit on October 31.
Prime Minister Boris Johnson met with Corbyn after MPs voted down his attempt to fast-track his Brexit deal through Parliament.
Last month Johnson twice challenged MPs to hold an early General Election but this was rejected both times.
Labour has said it will only support an early election when a no-deal possibility is dismissed.