Similarities to Previous Bill: The Labour Party’s new Renters Rights Bill closely mirrors the Conservative government’s previous Renters Reform Bill.
Expected Measures:
- Section 21 Powers: The bill proposes scrapping Section 21, which currently allows landlords to evict tenants without reason.
- Minimum Term for Notice: The minimum occupation term before a landlord can serve notice may be extended, potentially up to two years.
- Up-Front Rental Payments: Restrictions may be imposed, limiting up-front rent payments to a maximum of five weeks.
- Decent Homes Standard: The bill may extend the Decent Homes Standard, currently applied to social housing, to the private rental sector.
- Landlord Register: A compulsory register for landlords may be introduced.
- Tenant Redress System: A new redress system for tenants might be established, possibly under the Housing Ombudsman.
- Rent Review Restrictions: Measures may be introduced to prevent rents from being set above the levels proposed at rent review, with disputes potentially referred to the First Tier Tribunal.
- Pets: A default position allowing pets in rental properties may be implemented unless landlords provide strong reasons for refusal.
Potential New Measures:
- Speed of Implementation: Labour is expected to move faster with fewer internal delays compared to the Conservative government.
- Court System Reforms: Unlike the previous bill, Labour has not yet addressed potential reforms to the court system or the clearing of backlogs.
- Bidding Wars: There may be attempts to define and prevent ‘bidding wars’ among tenants.
- Metro Mayors’ Powers: Metro Mayors might gain the ability to localize regulations, with potential templates like the ‘Good Landlord Charter’ in Greater Manchester.
Rent Controls:
- Officially ruled out by Labour’s Shadow Housing Secretary, though some Labour figures and other regions like Scotland have shown support for rent controls.
- Timescale:
- Abolishing Section 21 powers is a priority and may be addressed separately from the rest of the bill.
- The full Renters Rights Bill is expected to go through the legislative process, with the law potentially taking effect in early 2025.
As with many such policies, there will inevitably be unintended consequences. This together with the expected raising of minimum EPC levels could lead to a sell off of many private rented properties, perhaps making the sector worse for the very tenants the government are trying to protect.
Stay tuned for our updates on Facebook & Instagram.
