What Does the UK General Election Mean for The Private Rental Sector & Renters Reform Bill?
As the UK gears up for its next general election in July, the spotlight is increasingly focusing on housing policies, with the Renters Reform Bill still very much a talking point despite failing to get through parliament before it was dissolved. This issue is gaining traction as a significant political battleground, given the rising number of renters, growing rental prices and the pressing need for more equitable housing policies.
Here, we explore the potential impacts of the upcoming general elections on the UK’s rental market as well as the proposed Renters’ Reform Bill; and what it could mean for millions of landlords and tenants across the country.
The Private Rental Sector
Private rentals account for approximately one fifth of all households in the UK and the private rental sector has undergone a significant amount of scrutiny and discussion in recent years. As rental yields and average rents continue on their upward trajectory, the private rental sector remains a prominent part of the housing market and therefore a key consideration across the political spectrum.
The Conservatives originally introduced the Renters Reform Bill back in May 2023 – as promised in their 2019 manifesto – and have remained committed to reforming the private rented sector throughout their time in Government. However, significant delays to the end of ‘no fault’ evictions pending a review of the court system and their opposition to rent controls have been widely criticised by both renter groups and the Labour party. However, it is clear that the party is prioritising having appropriate legal systems in place so that the rights of both landlords and tenants are correctly protected.
Meanwhile, Labour has also expressed its support for reforming the private rented sector and was openly pushing for more transparency in rental prices, greater tenant rights as well as a ban on rent bidding. In fact, deputy leader and shadow housing secretary, Angela Reynor, recently stated that the party will scrap Section 21 on their first day in office as well as tighten legal loopholes which leave tenants open to unfair practises. In addition, the party has called for a national register of landlords.
The Renters Reform Bill
The most significant impact of the UK general election is the termination of the Renters Reform Bill through parliament. To hold a general election, parliament closed as requested by Rishi Sunak on the 22nd May, meaning that both the House of Lords and the House of Commons had to completely dissolve on Thursday 30th May. As The Renters Reform Bill did not completely pass through parliament before it closed, the much contested and recently reviewed proposal will now not become law unless the next government reintroduce it.
However, with both main parties expressing its commitment to reforming the private rental sector, the likelihood is that the Renters Reform will begin its journey through parliament for a second time, meaning that it’s a matter of “when” rather than “if” the abolition of the Assured Shorthold Tenancy and Section 21s will become law across the UK.
The results of the UK’s general election will determine the level of impact on both the private rental sector as a whole and, more specifically, the legalities surrounding tenancy agreement. A recent survey conducted by Landbay found 48% of landlords polled had concerns about a potential change of government, but it is important to remember it is in the interest of the private rented sector as a whole to build a fairer system whereby all interests are safeguarded.
General Election Polls
As of the 6th of June, the first polls since Nigel Farage became leader of the Reform Party show an increase in support for the party, but little difference to the overall picture. The BBC’s latest poll survey data reinforced Labour’s lead over the Conservative Party by, on average, over 20 points. Meanwhile, the Telegraph’s most recent data also revealed growing support for Labour.
Whilst these polls are based on a small portion of the electorate, these results signal a positive step forward for the private rental sector, with Labour advocating for improved tenant rights throughout the original Bill’s journey through parliament and the party’s clear intent to abolish Section 21 on their first day in office and tighten loopholes that risk leaving tenants up for exploitation.
Charlotte Thursfield, CEO of SevenLiving says: “The uncertainty surrounding the future of the Renters Reform Bill is bound to cause some frustration amongst both landlords and tenants alike. However, the private rental sector remains a key consideration across the political spectrum, so it’s likely we will see a different version of the Renter’s Reform Bill begin to make its way to law. The parliamentary review process ensures that the rights and interests of both landlords and tenants will be protected to some degree as we have seen in recent months, so it’s important for landlords to continue to keep up to date on what’s happening and act accordingly.”
Advice for Landlords
Given the disruption to the government and the Renters Reform Bill, landlords should stay vigilant and informed about legislative developments that affect the rental market.
Our team of professional letting agents are landlords themselves, so if you’re looking for clarity or advice on the upcoming changes to the private rental sector, please do not hesitate to get in touch and one of our team will be happy to help.
Alternatively, our flexible, online landlord services are catered to your individual requirements – whether you’re a hands-on landlord or you prefer to take a step back. We make lettings simple, and you can find out more about our landlord services here.