EXPLORING THE FUTURE
June 2024
We're just a couple of weeks away from a general election, and all parties have now released their manifestos outlining their proposed policies. Housing has emerged as a central issue in this election, with each party making enticing promises to voters.
The recent setback in passing The Renters Reform Bill highlighted significant differences between the parties. If consensus existed, we would already be discussing The Renters Reform Act 2024 alongside the 170 existing pieces of legislation that agencies must adhere to.
Both the Conservatives and Labour agree that elements of The Renters Reform Bill will feature in the next government's agenda. However, what does this mean for landlords and the broader private rental sector?
Section 21 notices
With the exception of Reform, all parties have promised to ban section 21 in the next parliament, but with different approaches.
Labour’s manifesto has a commitment to ban ‘section 21 no-fault evictions immediately’, which in parliamentary terms, immediately will most likely mean early next year.
Despite not passing the Renters (Reform) Bill, the Conservatives have promised to reintroduce it in some form.
What is unclear from all parties is how they plan to reform the court system and section 8 notices which are crucial parts of the possession process if section 21 notices are to be scrapped (Source: Manifestos of Labour and Conservative parties).
Tenancy reform
Tenancy lengths were one of the most controversial parts of the Renters (Reform) Bill, with plenty of objections to the proposed removal of fixed term tenancies.
The Labour and Conservative manifestos don’t specifically mention tenancy reform at all. However, the Lib Dems propose three-year fixed tenancies (Source: Manifestos of Labour, Conservative, and Liberal Democrat parties).
Rent controls
Capping rent increases has been a hot topic lately after a Labour report suggested they would introduce rent caps, neither the Conservatives or Labour mention this in their manifesto’s (Source: Manifestos of Labour and Conservative parties).
Energy efficiency
Minimum energy efficiency standards (EPC Rating) have and always will be on the parliamentary agenda. We have seen over the past few years many attempts to increase energy efficiency in rental homes, and we now have a minimum E rating in place for all rental properties in England.
Labour have pledged a minimum energy efficiency rating of C for the Private Rental Sector by 2030 which will present a challenge, and large cost outlay for many landlords. Both Labour and the Conservatives are also intending to invest around £6 billion to upgrade homes, detail is thin on the ground at this time. The Lib Dems have committed to making all Private Rental Sector homes hit EPC C by 2028 (Source: Manifestos of Labour, Conservative, and Liberal Democrat parties).
Reform’s draft manifesto takes a different approach, promising to scrap net zero targets and related subsidies.
Property standards
Surprisingly little is said in the manifestos around new property standard requirements. Given the widespread support in the last parliament for applying the Decent Homes Standard to the Private Rental Sector, however it is likely to come back
Labour does commit to ‘raising standards decisively’ in private renting. This would include applying Awaab’s Law to the Private Rental Sector. This law currently requires social housing providers to investigate and address hazards in properties within certain timeframes.
Conclusion
Anticipate significant changes—some immediate, others forthcoming, but whatever the election outcome may bring, Bentons, your East Midlands Property and Land Specialists, are here to guide you through the complexities of the Private Rented Sector.