05/07/2024
What landlords can expect from the new Labour government?
Keir Starmer won the general election.
With Labour’s landslide victory in the 2024 General Election, what can landlords in England expect in terms of both the content and pace of rental reform?
What landlords can expect from Labour – at a glance
A reminder of what Labour promised in their election manifesto
Will Labour bring in emergency legislation to abolish Section 21?
When will Labour introduce a new Renters Reform Bill?
What we know for sure is that Labour will include new Renters.
Reform Bill
Will Labour control rent increases in England?
What else might Labour include in a new Renters Reform Bill?
A reminder of what Labour promised in their election manifesto
Here is a reminder of the commitments in Labour’s 2024 election manifesto about the private rented sector (my use of bold):
Security also means having a secure roof over your head. That is not the case for too many renting their homes privately.
Labour will legislate where the Conservatives have failed, overhauling the regulation of the private rented sector.
We will immediately abolish Section 21 ‘no fault’ evictions, prevent private renters from being exploited and discriminated against, empower them to challenge unreasonable rent increases and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.
Labour Party Manifesto 2024, pp79-80
Will Labour bring in emergency legislation to abolish Section 21?
Many landlords have been concerned that the word “immediately” means that Labour would somehow abolish Section 21 the week after the King’s Speech. However, this cannot happen, and the word “immediately” indicates that it is a priority and is likely to be one of the first Acts of Parliament of the Labour government.
It is worth pointing out that had the Renters Reform Bill received Royal Assent before the election, Section 21 could have been abolished immediately. This is because Labour could have brought forward the implementation date in regulations.
However, the fact that the Bill fell in the run-up to the election means that Labour will need to start again and pass a new Bill through both houses of parliament.
It would be possible for Labour to pass a very short Bill that would “omit” Section 21 from the Housing Act 1988 by itself or by omitting the entirety of Chapter 2 of Part 1 (assured shorthold tenancies), which was in Clause 2 of the Renters Reform Bill.
However, Labour is more likely to go further, not least because of its manifesto commitment to “overhaul” the regulation of the PRS.
Either way, the Bill would need to go through the House of Commons and the House of Lords, which would take time.
When will Labour introduce a new Renters Reform Bill?
Labour’s manifesto refers to “overhauling the regulation of the private rented sector”, and Keir Starmer recently said to the Money Saving Expert, “We’ll pass strong new laws to level the playing field between landlords and tenants.”
Apart from the items above (abolishing Section 21, increasing tenants’ rights to challenge rent increases, and extending Awaab’s Law to the private rented sector, Labour give no further information on how they would change the regulation of the PRS or with “strong new laws” would “level the playing field”.
Clearly, it is not possible to pass primary legislation immediately after the election, but this is a strong signal that some rental reform, including the abolition of Section 21, will be in the King’s Speech on 17 July 2024.
What we know for sure is that Labour will include a new Renters.
Reform Bill
Labour’s manifesto has made clear that they will include the following in new laws that regulate the private rented sector:
The abolition of Section 21. We don’t know if they would make any changes to Section 8, along the lines that the Conservatives included in the Renters Reform Bill: How the Renters Reform Bill proposed changing Section 8.
Challenging rent increases. Reading between the lines, renters would be given greater rights to challenge rent increases in the First-tier Tribunal. It’s not clear if this would be limited to rent increases made under Section 13, but the tribunal would likely not be able to increase the rent if it found that the proposed rent was below market value.
Anti-discrimination laws. The Renters Reform Bill included wording that would prevent landlords from discriminating against applicants who received housing benefits or were families. A new Bill would likely include similar wording.
End rent “bidding wars”. While not in their manifesto, Keir Starmer, Angela Rayner, and Matthew Pennycook mentioned this commitment during the election campaign. Labour tabled an amendment in the Renters Reform Bill that would prohibit landlords (or those acting on their behalf) from “inviting or encouraging bids that exceed the amount stated as part of the advertisement or offer of the premises” – see amendment NC7.
Extend Awaab’s Law to the PRS. This was in Labour’s manifesto, and one of the amendments they tabled to the Renters Reform Bill was the following: see Amendment NC10. For more details on Awaab’s Law, see Awaab’s Law and other new social housing laws.
