Labour and its plans for Landlords and Tenants
It is no surprise that the Conservative Party and Labour Party have opposing policies when it comes to the private rental sector.
London’s Labour Mayor, Sadiq Khan, has expressed that he wants the new Prime Minister, Liz Truss, to enforce the policies proposed by the Labour Party. Sadiq wants the new PM to make landlords responsible for paying their tenants’ moving costs if they are evicted for the convenience of the property owner. Khan also wants to see notice periods extended so that tenants are given more notice before they are required to give up possession of the property. Labour has suggested that they may introduce notice periods of four months for all repossessions, which would without a doubt cause concern for landlords, particularly if this applied to section 8 notices on the grounds of rent arrears.
Khan has also called for power to freeze rents. Scottish First Minister, Nicola Sturgeon, has already implemented this reform in Scotland and has announced that she will be freezing rent payments until Spring, in the hope that this will help tackle the current energy cost crisis.
The recent Labour Party conference saw further commitment to reform in the private rental sector with many of Khan’s proposals echoed by Lisa Nandy (Shadow Secretary of State for Levelling Up, Housing and Communities) who also expressed keen interest in handing power to Metropolitan Area mayors and local council leaders to freeze rents.
Overall, Labour’s planned reforms are very pro-tenant. Lisa Nandy has also pledged to allow tenants to have pets, to create a national register of landlords, to initiate a legally binding decent homes standard in the private rental sector and examine a scheme for ‘portable’ deposits making it easier and cheaper for tenants to switch properties. Nandy also expressed that the Labour Party would create a Renters’ Charter, giving tenants more rights and safer homes – “we will tilt the balance of power back to you through a powerful new renters’ charter and a new decent homes standard - written into law.”
The Labour Party is also committed to the abolition of section 21 notices, a reform also proposed by the Conservative government but with legislation yet to be passed. Labour however goes a step further by wanting to reduce eviction powers for landlords whose tenants are in rent arrears. This would be a huge change for landlords as. according to the National Residential Landlords Association (NRLA), if Labour implements this change, they fear that this would send a signal to tenants that paying rent was somehow an optional extra.
What is clear is, that whether we have a Labour or Conservative government, reform in the private rental sector is coming. Landlords need to be well prepared, know their portfolio, know their obligations and their tenants, and ensure they have the right people to guide them through the changes to manage a successful portfolio.
If you are a landlord, make sure to keep an eye on the news to see what changes may be coming your way in the next couple of months.
Contact Us
News & Insights
