Labour government plans for the rental sector

The King’s Speech has stated the government would give “greater rights and protections to people renting their homes”

Abolishment of Section 21 

The manifesto has declared a strong commitment to abolishing Section 21 no-fault evictions to protect private renters from exploitation and discrimination. Angela Rayner has been quoted as saying that they will scrap Section 21 on their first day in office. Today marks a significant step in this direction with the announcement in the King’s Speech that legislation will be introduced. The process involves multiple readings in the House of Commons and House of Lords before legislation can be passed.

Although the abolishment of Section 21 might seem concerning to some landlords, there will still be legitimate grounds for regaining possession of properties. These grounds may include serious rent arrears, anti-social behaviour by tenants, and situations where landlords or their close family would family members wish to move back into the property. Furthermore, the government has pledged to reform the grounds for possession through a new Renters’ Rights Bill, ensuring a balanced approach that protects tenants’ rights while addressing landlords’ needs.  

Improving standards in Private Rented Sector 

The manifesto has stated its commitment to raising standards within private rented homes. This includes extending Awaab’s Law (the tragic death of a 2-year-old from exposure to mould in social housing). The aim is to ensure that all rental properties meet higher safety and quality standards, protecting tenants from health hazards and poor living conditions. 

Regulation of Agents 

To further protect consumers and enhance professionalism in the property management industry, the manifesto outlines plans to establish a working party on the Regulation of Property Agents (ROPA) within two years. This initiative will include mandating minimum qualification requirements for property agents and publishing a standard code of practice for property managers. These measures are intended to ensure that property agents operate with greater accountability and transparency. 

Warm Homes Plan 

The manifesto has introduced a Warn Homes Plan aimed at improving the energy efficiency of homes. Although a specific energy rating target has not been mentioned, the plan proposes a potential target date of 2030. The government plans to invest an additional £6.6 billion over the next parliament to upgrade 5 million homes, reducing energy consumption and costs while contributing to environmental sustainability. 

Broader Housing Considerations 

In addition to the above measures focused on the PRS, the manifesto outlines broader housing reforms including:

• Reforming planning regulations to bolster housing stock and make it easier to build new homes, addressing housing shortages 
• Anti Money Laundering (AML) reform and improved fraud prevention – enhancing measures to prevent financial crimes and protect the integrity of the housing market 

Staying in the Property Rental Market with Confidence 

The proposed changes in legislation might raise concerns for landlords, but it doesn’t mean it’s time to leave the property rental market. 

At Exeter Property, we are dedicated to keeping on top of legislative changes and ensuring full compliance with new regulations. We’ve been registered with SafeAgent for many years, demonstrating our commitment to a regulated industry and our desire to uphold minimum standards in property management.  

For landlords still managing properties independently, we offer a solution. Instead of considering exiting the market due to these changes, why not give us a call? We can help you navigate the new landscape with ease, ensuring you meet all new requirements while continuing to provide excellent service to your tenants. 

Contact us today to learn more about how we can assist you in navigating these changes and maintaining a successful rental business. We make renting easy!