The Government has pledged to modernise the country’s “insecure and unjust private rented sector” with new legislation, as rental reforms are once again under discussion in Parliament.
Six new property laws coming in 2025 for renters and landlords and homeowners have been revealed by the Labour Party government. The Government has pledged to modernise the country’s “insecure and unjust private rented sector” with new legislation, as rental reforms are once again under discussion in Parliament.
Deputy PM Angela Rayner commented: “For far too long working people and families have been at the mercy of a fickle and unfair rental market, faced with outrageous upfront costs, and struggling to find a safe and secure place they can truly call home.”
The Labour Party MP said: “We are delivering on our promise to transform the lives of millions of renters so families can put down roots, allow their children to grow up in secure and healthy homes, and make sure our young people can save for their future.”
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Housing Minister Matthew Pennycook is all set to brief Parliament with news that the forthcoming Bill will “modernise the regulation of our country’s insecure and unjust private rented sector, levelling decisively the playing field between landlord and tenant”.
No fault evictions
The government is proposing the abolition of “no-fault” evictions, meaning landlords can’t just kick tenants out with no reason. At the heart of the bill, according to several people with knowledge of its contents, will be an immediate end to so-called section 21 evictions, where a landlord can oust a tenant for no reason, to be brought into force as soon as the bill is granted royal assent.
It will also include other protections such as requiring landlords to give more notice before they evict a tenant and preventing them from inciting bidding wars by encouraging prospective tenants to bid more than the listed rental price.
Right to Buy
Additionally, Labour has promised to overhaul the Right to Buy scheme, which allows tenants in social housing to buy their properties at a discounted price.
Critics argue that this policy has led to a massive reduction in affordable housing stock, but Labour wants to ensure that anyone who decides to buy their council home will not do so at the expense of reducing the availability of affordable homes for others.
More affordable homes
There will be a boost in funding for the building of affordable homes, especially for first-time buyers. A spokesperson for the Ministry of Housing, Communities and Local Government said: “The renters’ rights bill will be introduced in due course and we have committed to engaging with the sector throughout the process.
“We will take action by abolishing section 21 ‘no-fault’ evictions immediately, end rental bidding wars to stop the predatory practice of pitting renters against each other and empower renters to challenge poor conditions.”
Shared ownership
The introduction of shared ownership schemes is set to make waves, where buyers can purchase a percentage of a property and rent the rest. This allows people to get on the property ladder without needing the full deposit for the whole home.
Rights and obligations
The Bill also proposes to standardise tenancy contracts, which could make it easier for renters to understand their rights and obligations.
No more complex jargon or hidden clauses—just clear, straightforward agreements that benefit both parties. Polly Neate, the chief executive of Shelter, said: “The government’s plans to finally draw a line under section 21 evictions will allow renters to breathe a huge sigh of relief.” But she added: “To make renting genuinely safer, secure and more affordable, the new renters’ rights bill must limit in-tenancy rent increases, extend notice periods and root out discriminatory practices that drive homelessness.”
Landlords organisations, which led a highly successful lobbying campaign against some of the provisions in Gove’s bill, said the Labour bill would give the market much-needed clarity but warned that it could also strain Britain’s stretched courts system.
Ben Beadle, the chief executive of the National Residential Landlords Association, said: “The end of section 21 will leave the courts needing to process possession claims where landlords have a legitimate reason … Without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed, which will not serve the interests of tenants or landlords seeking justice.”
Awaab’s Law
Ministers will seek to enact Awaab’s law, which will force landlords or agents to carry out crucial repairs within a specified period of time, with the exact period likely to be decided after a consultation.
The bill marks a major victory for renters’ rights campaigners, who have warned for years that the lack of tenant protections in the UK has exacerbated the housing crisis and added to the financial instability of millions of renters.