Following the King’s speech on 17/7/2024, significant legislative changes that could affect landlords were outlined. Here is a summary of the key proposals and their potential impacts:
Abolition of Section 21 Notices
As widely anticipated, the new Government has confirmed plans to ban no-fault evictions, known as Section 21 Notices. However, there was no commitment from the Secretary of State for Housing to reform the court system before these notices are abolished. This lack of promise raises concerns among landlords, given the current long delays in the court system. Alongside the abolition of Section 21 Notices, reforms to the Section 8 Notice process are expected, broadening the grounds on which landlords can regain possession of their properties.
Control of Rent and Rent Increases
The King pledged to empower tenants to challenge unfair rent hikes. This is likely to involve new mechanisms for tenants to contest rent increases, potentially including new rules for tribunals and cost recovery for tenants.
Anti-Discrimination Laws
The speech confirmed the introduction of new anti-discrimination laws. The anticipated Rental Reform Bill is expected to include provisions preventing landlords from discriminating against applicants receiving housing benefits or those with families.
Extension of Awaab’s Law to the Private Rental Sector
Awaab’s Law, which requires social landlords to adhere to strict time limits for addressing dangerous hazards like damp and mould, will be extended to the private rental sector. This extension means private landlords will also need to respond promptly to reports of such hazards. The law was named after Awaab Ishak, who tragically died in 2020 due to mould exposure in his parents’ home.
Pets in Lettings
The proposed rental reforms will grant tenants the right to request pets. Landlords will be required to consider these requests reasonably and cannot refuse them without a valid reason. However, landlords may request insurance to cover potential damage caused by pets.
Timeline for Implementation
Despite the use of the term “immediately” in Labour’s manifesto, the practical constraints of introducing new laws mean the changes will take some time. The Ministry of Housing, Communities and Local Government’s Policy Team will advise the new Minister on the detailed steps already taken, including extensive market consultation during the drafting of the original Renters Reform Bill.
Landlords should stay informed and prepare for these impending changes, which aim to create a more balanced and fair rental market.
If you would like to discuss anything in this article or require legal assistance as a landlord, please contact our specialist Landlord Advice team on 01603 677077 or email info@spiresolicitors.co.uk.