Labour Pledges To Reform Letting In New Legislation

15/07/2024

If you are seeking property to rent in Hounslow, you will be in good company, but security of tenure also matters. If you have ever had to move suddenly after a section 21 ‘no fault’ eviction, you may feel this particularly keenly.


With this week bringing the King’s Speech, renters have had their first chance to see what the newly-elected Labour government plans to do about this topic, as well as other possible reforms to the housing and rental sector.


The party has previously pledged to bring in a ban on Section 21 evictions “immediately”, after the previous government’s Renters Reform Bill, which included such a provision, fell when parliament was dissolved ahead of the general election. 


Among the issues highlighted in the Renters Reform Bill was a “precarious lack of security” caused by the danger of section 21.


The guide to the bill said: “Short notice moves worsen children’s educational outcomes, make it challenging to hold down stable employment, and prevent families putting down roots and investing in their local area.”


In addition to abolishing Section 21 evictions, the bill also proposed to stop ‘backdoor’ evictions prompted by excessive rental increases. At the same time, the bill also proposed to make it easier for landlords to recover properties when tenants were at fault.


The fine detail of new legislation is not the subject of the King’s speech, but the announcement of a bill, especially in the first legislative programme from an incoming government, is always a signal of what areas are going to be given top priority.


What this means is that renters may expect that, at the very least, the main provisions of the bill the late Conservative government set out will be incorporated in the new government’s legislation, with other measures proposed as well.


The new government has also pledged to build 1.5 million new homes over the course of the parliament, which if this can be achieved - partly through building on green belt areas near Londonreclassified as ‘grey belt’ - will mean more homes to buy or rent. This may impact the rental market significantly, but it will take some time for the effects to become apparent.
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