"If the rollout of more selective licensing schemes does get approved, it could mean an additional cost for landlords as well as private landlords facing stricter safety and management standards."
The local elections took place on May 5 2022, allowing residents across England, Wales and Scotland to vote for their new local representatives.
Seven mayoral elections were held in areas including Croydon, Watford, and the South Yorkshire Combined Authority, while a total of 4,000 seats across 146 councils were up for grabs.
What were the results?
A total of 223 councillors and three councils were gained by the Liberal Democrats. Labour added 108 councillors to its list and accumulated five additional councils including Westminster City Council and Wandsworth Council for the first time.
The Conservatives lost nearly 500 seats and lost control of 11 councils. Boris Johnson summarised the election as a “tough night” while the Tory leader of Carlisle Council called for the prime minister to resign because of the result.
Daniel Evans, chair of the AIIC and managing director of Home Inventories, said: “Although it had a really great result in London, Labour had more of a mixed set of results across the rest of the country.”
“Meanwhile, the Tories had a bad night by any calculation, but perhaps not quite as bad as feared. The Lib Dems continued their recent momentum and the Greens were one of the biggest winners on the night.
“While local elections don’t tell the whole story, they are a good barometer for how the country might vote at a national election, and it seems the current government was punished for partygate and its response to the cost-of-living crisis.
“Whoever is in charge nationally, and perhaps more crucially locally, can have a big impact on the functioning and regulation of the rental market.”
What impact could the results have on the market?
An overview of what local authorities and mayors have pledged in recent years helps to understand what issues will be prioritised across England, Wales, and Scotland over the upcoming months.
Council tax, landlord licensing, planning applications, and the cost of living crisis are key topics that shaped voters' decisions.
Evans continues: “Shortly after the local elections, the Queen’s Speech was delivered by Prince Charles on May 10 2022. This outlined the government’s plans to level up through rental reform and aims to improve the market for landlords, tenants, and letting agents.
“Although this is an attempt to create a clear vision for housing and renting, there could be further delays because of the Conservative Party’s recent poor outcome and the continued pressure on the Prime Minister.
“Allegations of parties in Downing Street at the height of the coronavirus outbreak caused members of the public to cast their vote elsewhere. If there is a change in leader or, further down the line, government, the agenda for rental reform could face further delays.”
Evans points out some Labour politicians, including London Mayor Sadiq Khan, have been keen advocates of rent controls and greater licensing and regulation of the private rented sector. The Liberal Democrats and the Greens have also mooted the idea of some form of rent controls in the past, too.
Evans added: "If the rollout of more selective licensing schemes does get approved, it could mean an additional cost for landlords as well as private landlords facing stricter safety and management standards.
“There seems to be a common agenda to improve the private rented sector by tightening rules. Landlords who rely on processes such as inventories will remain in good standing if rent controls, further licensing and reform are brought forward.”
He concluded: “Overall, the local election results have probably made the landscape more uncertain than ever, with the most likely result at the next election – based on current vote share and the polls – being a hung parliament with no party claiming a majority.”
“Such uncertainty could make getting anything through Parliament a difficult task, while the current cost of living crisis, along with the war in Ukraine and the ongoing fallout from Covid and Brexit, is keeping parliamentary time to a premium and creating a legislation logjam. For all the talk of rental reform being introduced soon, an under-pressure government next month facing two tricky by-elections doesn’t bode well for the speed and clarity the industry requires.”
