Labour’s in, and what felt like a foregone conclusion for most, still of course comes with the reality of a different style of government and potential challenges and changes for landlords.
We wanted to take this opportunity to raise the main points put forward by Labour, to explain how they may impact you and your rental property, and to clear up some of the jargon around it:
Abolishment of Section 21 Evictions
Labour has committed to immediately abolish Section 21 ‘no-fault’evictions. This change means landlords will no longer be able to evict tenants without providing a specific reason. This may sound familiar as it was a key part of the lettings ‘white paper’ undertaken by the Conservative government, and something due to be brought in within the next term.
Energy Efficiency Standards
Landlords will be required to upgrade their properties to achieve an Energy Performance Certificate (EPC) rating of C or above by 2030. This also may sound familiar, as this was already brought into law as far back as 2019. However, it was abolished within the last six months. Many landlords had already started to make changes, and as we understand it, there’ll be allowances for property exclusions if they don’t meet certain benchmarks, as previously was the case.
Rent Stabilisation
Labour supports ‘third generation’ rent stabilisation measures, limiting rent increases within tenancies to the lower of local wage growth or the Consumer Price Index (CPI). This is something that would be a new consideration, however, local wage growth in Bedfordshire was between 5.4% and 10.94% between 2021 and 2023, and CPI over the same period started at 2.21% and reached a high of 9.1%. Based on these recent figures and working with the lesser of the two out of wage increases and CPI, it would still mean an increase of the average rent in our patch of circa £1,100 per annum.
National Landlord Register
Labour plans to establish a national register of landlords. This will increase transparency and accountability, but add administrative responsibilities and potential costs for landlords.
Extension of Awaab’s Law
Initially applied to social housing, Awaab’s Law will be extended to the private rental sector. This law mandates landlords to address health and safety hazards, such as damp and mould, within specific timeframes. This is really just an extension of the HHSRS responsibilities already in place, and our clients as responsible landlords should be allowing us to manage properties in a safe and proactive way already. However, the rollout and extension of our In-House Repairs department will continue to see a decrease in both costs to landlords and waiting time for works to be completed.
Bidding Wars and Upfront Payments
Labour intends to end rental bidding wars and upfront payment demands, aiming to create a fairer rental market. This means landlords cannot encourage or accept bids above the advertised rent. Realistically, upfront payments haven’t been chargeable since the tenant fee ban, and only on rare occasions is there overbidding on rental properties if they’re priced accurately to begin with.
Housing Quality Standards
Labour plans to impose stricter quality standards for rental properties, which will likely involve regular inspections and higher compliance costs to meet the required living conditions. Again, our clients should be allowing us to manage properties safely and proactively already, and our In-House Repairs department will continue to see decreased costs and waiting times.