The Renters (Reform) Bill was introduced to Parliament back in 2023, but despite having had its 3rd and final reading in the Houses of Common in April, the Bill didn’t complete its passage through Parliament before the election took place.
The Bill aimed to abolish fixed-term assured shorthold tenancies (ASTs) and no-fault evictions, requiring landlords to establish grounds for possession such as selling the property or repeated rent arrears.
Labour’s plan
In the King's Speech earlier this month, the Labour Government announced plans to continue the Renters (Reform) Bill introduced by the previous Conservative Government, renaming it the Renters’ Rights Bill. The new Bill will include looking at the following:
Abolish Section 21 “no fault evictions”.
This will look to eliminate arbitrary evictions therefore improving tenant security and stability. New, clear possession grounds will allow landlords to reclaim properties when necessary.
Enable tenants to request permission for pets.
Tenants can request to keep pets, which landlords must consider reasonably. Landlords may request pet damage insurance.
Allow tenants to challenge rent increases.
Tenants will be able to challenge rent increases if they believe them to be unjust.
Apply a Decent Homes standard to private rentals including applying Awaab’s Law
The aim is to ensure rental homes are safe and secure, and to address poor-quality housing. There will also be clear legal timelines for landlords to address serious hazards in homes.
Prohibit discrimination against tenants receiving benefits or with children.
It will be illegal for landlords to discriminate against tenants receiving benefits or with children, ensuring fair access to housing.
Establish a property ombudsman service.
A new service designed to offer quick, impartial dispute resolution, reducing the need for court proceedings.
Create a digital database for rental information.
A centralised database will provide essential information for landlords, tenants, and councils, aiding in compliance and informed tenancy decisions.
Landlord view
The number of buy-to-let (BTL) mortgages (the mortgages landlords use to finance rental property) shrank for the first time - dropping by 46,000 in Q1 2024, versus Q1 2023. The total number of BTL mortgages is now 1.98 million.
Whilst there are a number of reasons behind this, the cost of borrowing, increased legislation and increased taxation are all cited as reasons. Short term, the reduced number of rental properties available has arguably caused rent prices to increase.
What next?
Many of these proposals were contained in the previous iteration of the Bill. As things stand, it is expected that the Labour Party will provide more details behind their plans which is likely in the Autumn.
CreditLadder can help you improve your credit score
If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.
CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.
Remember the information provided in this article is for information purposes only and should not be considered as advice.
