Reform’s rise in the polls has prompted growing debate over what a Nigel Farage-led government could mean for the UK housing market.
The party has positioned itself as pro-business, pro-investment and opposed to what it sees as excessive regulation.
But what might it actually do – and what impact will it have? The i Paper takes a look below.
Renters’ Rights Act to be repealed
In recent years, landlords have faced changing regulations, including the Renters’ Rights Act, which came into force at the start of the month.
The legislation is designed to strengthen protections for tenants by abolishing no-fault evictions. It also ends fixed-term tenancies, replacing them with rolling ones.
Supporters of reforming the sector argue the changes were needed to improve conditions and security for tenants, but critics warn they risk driving landlords out of the market altogether.
Reform UK has said it would reverse the changes in the Act.
A Reform UK spokesman said: “Labour’s Renters’ Rights Act has been a disaster for renters. It’s already driving landlords to sell up in droves, slashing rental supply and pushing up rental prices.
“All this Act has achieved is making renting more expensive and leaving ordinary people desperately hunting for homes that simply aren’t there.
“A Reform UK government would introduce the ‘Great Repeal Bill’ to ditch daft regulations such as the Renters’ Rights Act in order to drive growth.”
Could tax changes for landlords be on the cards?
Landlords in the UK were previously able to deduct mortgage interest payments from rental income before calculating tax. Since 2017, Section 24 of the Finance Act phased out this relief for individual residential landlords, who now receive a 20 per cent tax credit, hitting higher-rate taxpayers hardest.
Some landlords have responded by using limited companies, where interest can still be deducted as a business expense.
But at the last election, Reform UK said it would repeal the tax changes that stopped landlords from deducting all mortgage interest.
In a speech this year, its leader Nigel Farage rowed back on committing to all the tax cuts it proposed at the 2024 election due to the state of the economy, though it’s clear that the party wants to reduce taxes overall, where it can.
With this and the commitment to changing the Renters’ Rights Act, experts think Reform UK could make the housing market more attractive for landlords again, though the scale of the impact would be unclear.
David Hollingworth, a mortgage broker at L&C Mortgages, said: “Whether a reversal [of mortgage interest rules] would encourage smaller-scale landlords to return to the market would take time to show, as other factors, such as higher interest rates and stricter lending rules, also play a role.”
Some experts warned there could be knock-on effects for first-time buyers too.
Emma Fildes, property adviser at Brick Weaver, said increased activity in cheaper parts of the country, like the North, where rental yields are high and property prices are low, could make it even harder for younger buyers to compete.
She said: “My fear is that many first-time buyers when pitted against a cash-rich investor don’t stand a chance and prices could rise to unaffordable levels over time.
“Some of [these changes] would appeal to landlords who will have felt like they have been hit hard in recent years with changing market conditions, tax changes and tighter lending criteria.
“Of course tenants have also felt the brunt of rising rents as a result and there’s a balance to be struck to maintain a market that works for both but also encourages first-time buyers.”
Possible stamp duty cuts
Stamp duty is another tax that could see changes. In its 2024 general election manifesto, Reform UK proposed scrapping stamp duty on all home purchases up to £750,000, though again it’s not clear if it will bring back this policy at the next election.
If it did, it would reduce the tax paid by the vast majority of buyers in the country.
Some experts have said that cutting stamp duty could free up the housing market, as it stops people moving.
The ex-director of the Institute for Fiscal Studies, Paul Johnson, has argued that stamp duty “gums up the housing market”.
Second-home buyers pay a surcharge, so if Reform UK were to cut this, it could provide further relief for landlords.
Reform back housebuilding – with limits
Experts say the biggest impact of a future Reform government on the housing market will depend on its approach to housebuilding and investor support.
Property expert Jonathan Rolande warned that Britain’s chronic housing shortage is the root problem of high prices, explaining: “Britain simply doesn’t build enough houses.”
The Government has pledged to build 1.5 million new homes in England by 2029, but is not currently on track to meet this.
Farage has also stressed the need for more homes. In a video posted on Facebook in February, he said: “Mass immigration, particularly under the last Conservative government, has meant we have got to build a huge number of houses. I understand that. People need somewhere to live.”
At the same time, Farage clarified that Reform would “fight building on greenfield sites and beautiful coastal sites,” adding, “We have to build where it’s appropriate. This is wrong”, pointing to a greenfield behind him, “and it’s wrong in so many parts of the country”.
Reform UK has broadly positioned itself as pro-development but has previously ruled out building on some greenfield and green-belt sites, reflecting a selective approach to housing.
Rolande added that policies that support landlords and investors could encourage more rental properties and new homes, helping to address supply shortages, while any policy that discourages investors could worsen the housing crisis.
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