Landlord & Tenant Specialist Lawyer Anna Hughes examines the impact of the newly announced General Election on the Renters (Reform) Bill, a significant piece of legislation that was aimed at transforming the private rental sector.
Having a fair and balanced rental market is crucial for both tenants and landlords alike. The Renters (Reform) Bill, a key element of the Conservative Party’s 2019 manifesto, aimed to address this balance by abolishing Section 21 'no fault' evictions and strengthening landlords' rights to repossess their properties. However, the recent announcement of the General Election on 4 July meant the Bill failed to gain Royal Assent.
The Renters (Reform) Bill successfully passed through the House of Commons and was in the committee stage in the House of Lords. Despite this progress, the Bill did not make ‘wash up’. So, with Parliament dissolving on 30 May 2024 the Bill is arguable in the shredder.
The upcoming dissolution marks the official end of a Parliament, rendering all House of Commons seats vacant. With the Bill being missed from the Parliamentary timetable for the last legislative day (24 May), the Bill cannot advance further before dissolution. This delay means the reform now lies with the incoming Government post-election.
One of the Bill’s primary objectives is to abolish Section 21 'no fault' evictions, providing tenants with greater security. This change would prevent landlords from evicting tenants without a valid reason, thus offering tenants more stability in the private rental sector.
Simultaneously, the Bill ensured landlords have reasonable grounds for repossessing their properties when necessary. By balancing tenant protection with landlord confidence, the Bill sought to create an attractive environment for investment in the private rented sector.
The Bill’s future is now uncertain. Even if the Conservative Party wins the upcoming election, the Bill cannot simply continue from where it left off; it must be reintroduced and pass again through all legislative stages, practically taking several steps back.
Conservative Majority: If the Conservatives secure a majority, they may reintroduce the Bill, potentially with revisions based on feedback and political strategy.
Labour or Coalition Government: Should Labour or a coalition form the next Government, the approach to rental market reform could change, impacting the specific provisions and priorities. We’ll know more when the Labour Manifesto is released on Thursday 4th July.
Given this period of uncertainty, landlords should stay informed about legislative developments and be prepared for potential changes. Understand your portfolio and make sure your tenancies are compliant. Engaging with professionals such as well-informed lettings agents, educational providers, membership forums and landlord solicitors will provide much needed guidance and ensure you can successfully manage your portfolio within future regulations when they are implemented.
The Renters (Reform) Bill represents a significant step towards a fairer rental market. However, its progress is at a halt by the upcoming General Election. Landlords must remain vigilant and seek expert legal advice to navigate this evolving landscape.
For tailored legal advice from experienced landlord solicitors, contact Anna Hughes in our award-winning Landlord & Tenant Team. Email Anna at a.hughes@woodstocklegalservices.co.uk or complete the form below to schedule a consultation.