Since our last newsletter, there has been a snap General Election called by Rishi Sunak announced for the 4th July. Parliament has therefore now been dissolved. While some bills, including the Leasehold and Freehold Reform Bill, were debated before parliament was dissolved, the Renters (Reform) Bill was not on the timetable to be discussed. Therefore, the bill will not now become law.
Feedback to this news from stakeholders in the Private Rented Sector has understandably been mixed.
The Bill in its various guises, has been a factor hanging over the sector for many years now and for many just having some clarity – for better or for worse – would have been welcome by this point. For others – most perhaps – there were so many elements of the bill that were so hated, that its demise will be cheered. In addition, many of its elements – particularly the abolition of the Sec 21 route to possession – were so ill-conceived and have had such a detrimental impact on the sector – being seen now in the form of rapidly increasing rents for tenants – that a new start on reform should be welcome.
So, what are stakeholders saying?
Ben Beadle, chief executive of the National Residential Landlords Association, is disappointed the bill won’t now make it into law: ‘The news comes despite the fact that the Bill was in a state which would work for tenants and responsible landlords.
“There has been too much dither and delay in government, and a failure to be clear about how to ensure changes would work in practice. Critically, the market now faces yet more crippling uncertainty about what the future of the private rented sector looks like.
“Reforming the sector will be an important issue for the next government and we will work constructively with them to ensure changes are fair and workable. That means empowering tenants to challenge rogue and criminal landlords whilst ensuring the confidence of responsible landlords to stay in the market.”
Allison Thompson, National Lettings Managing Director, Leaders Romans Group, is also disappointed: “We are deeply disappointed that the much-anticipated Renters (Reform) Bill will not pass into legislation due to the upcoming general election on July 4th. This Bill has been in development for several years, aimed at addressing critical issues that impact both tenants and landlords.
“The Bill’s failure to pass into law is a significant setback. While many of the Bill’s provisions were contentious – including concerns over periodic tenancies, the abolition of Section 21 and the associated issues of court delays along with the inclusion of the right to request a pet – we believed that continued dialogue and amendments would have addressed the concerns of all stakeholders, ultimately benefiting the rental market”
Other market commentators are breathing a sigh of relief.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, comments: “The legislation was introduced very late on and whilst attempting to please everyone, it failed to please anyone.
“Many agents will be relieved that the current government’s plans to meddle with fixed term tenancies and reforming eviction grounds with little realisation of the unintended consequences will no longer pass, but this is soon outweighed by a sense of uncertainty and apprehension as to what the next government will do.”
So, what now?
Well Timothy Douglas’ comments seem to have hit the nail on the head. Although this bill in its proposed format will now not pass into law, as a sector we are now no further forwards and there is a continuing background of uncertainty surrounding how the new government will approach reform. As always, we will continue to report developments as they occur.
The Renters (Reform) Bill’s failure to pass into law has left the private rented sector in a state of uncertainty. While some stakeholders are relieved, others are disappointed and concerned about the future. The debate around the bill highlights the complexity and contentious nature of rental reforms, which need careful consideration to balance the interests of both tenants and landlords.
As we await the outcome of the upcoming general election and the potential for new proposals, it is crucial for all stakeholders in the private rented sector to stay informed and engaged. We encourage landlords, tenants, and industry professionals to share their views and experiences to ensure any future reforms are fair, practical, and beneficial for all parties involved.
Stay tuned to our updates as we continue to provide the latest news and insights on this evolving issue. Your feedback and participation are vital in shaping a balanced and effective rental market. Let’s work together to advocate for reforms that create a stable and equitable environment for everyone in the private rented sector.
At Lifeboat Lettings we will always help and advise landlords and assist where we can.
If you would like some help with any of the subjects covered above or anything else relating to properties or lettings, please email contact@lifeboatlettings.com.
