What we expect for tenants now Labour is in power

Now that we have a new Labour government, tenants can finally look forward to some changes that will, in the main, help ensure they can rent more safely and securely in the private rented sector (PRS).

That said, tenants renting from good landlords and qualified agents like us are unlikely to see any major difference, as there are already over 400 rules and regulations governing the lettings industry, and reputable landlords and agent already abide by these. The problem is, many of these legal requirements aren’t currently enforced in practice.

According to our latest lettings survey, the top three challenges tenants believe they face are:

1. The cost of living
2. High rents
3. Lack of social housing

Our survey also reveals that poor quality housing is another issue that needs tackling.

The good news is that many of Labour’s plans, as stated in their election manifesto, should address and positively impact these key issues. If the new government moves forward on them, tenants can look forward to:

• Section 21 ‘no-fault’ evictions being scrapped. Although Angela Rayner (the new Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government) previously stated that Labour would do this on their first day in office, the reality is that because of the wide-reaching impact of abolishing s21, it will take some time to do. The party has since said that it will not happen within in the first 100 days of the new government, but we do expect them to prioritise it.
• Ending automatic eviction for rent arrears. This means the section 8 ground would move from being ‘mandatory’ and courts would have the power to adjourn or suspend possession claims if they were challenged by tenants.

• The introduction of a four-month notice period for landlords. This increase from the current maximum two months would give tenants more time to find new suitable accommodation.

• Having the right to keep pets. Landlords would only be able to refuse a pet for a specific valid reason, such as the size of the property not being suitable for the pet, or a property lease prohibiting them.

• Being able to make reasonable alterations to a property. That could include things like redecorating and putting up shelves.

• Rent review clauses in tenancy agreements being scrapped. This is believed to help stabilise rents, as they could only be increased once a year, in line with the market.

• Improved energy efficiency and a better minimum standard of accommodation. The Decent Homes Standard, which currently only applies to the social rented sector, would be extended to the PRS. And the minimum rating on the EPC for rented properties is likely to rise to C within the next government term, meaning it will be easier and cheaper for many tenants to heat their home.

Although Labour’s plans to stabilise rents are helpful to some extent, they’re not going to be easy to implement or monitor. The reality is that with a chronic shortage of homes to rent in many areas, competing on price is the natural and most obvious way to whittle down the applicant pool. If rent controls are applied, agents and landlords will have to find another means to help them narrow down the list of prospective tenants – and that could present a challenge.

Overall, our hope is that the rental sector can finally secure clarity on what changes we can expect over the next five years. Then good landlords, tenants and agents can focus on adapting to the new policies, and support each other in growing the market with more decent homes to rent.

If you have any questions about the proposed changes, we’re here to help. Just get in touch with your nearest branch and have a chat with one of our lettings experts.