The Renters Reform Bill is No More: What This Means for the Housing Market

In a dramatic turn of events, the Renters Reform Bill has been scrapped! After a tumultuous journey through Parliament, marred by countless delays and heated debates, the bill has not progressed sufficiently to receive Royal Assent before the upcoming general election. This means the Renters Reform Bill will never become law, and the new government will need to start from scratch with new legislation. Despite this setback, most political parties remain committed to reforming the private rented sector (PRS), so changes are likely to come into effect in one way or another.

A Glimpse at Party Housing Policies

With the Renters Reform Bill off the table, it’s essential to look at what each political party promises in their manifestos regarding housing and the private rented sector.

Conservatives

• Building Homes and Protecting the Countryside: The Conservatives pledge to deliver 1.6 million well-designed homes while safeguarding our green spaces.
• Fast-Track Planning: They aim to provide a swift planning route for new homes on previously developed land in the 20 largest cities, requiring councils to allocate land for local and smaller builders.
• Green Belt Protection: A firm commitment to protecting the Green Belt from uncontrolled development.
• Energy Efficiency Investments: A £6 billion investment over three years to make 1 million homes warmer, including an energy efficiency voucher scheme for all households in England.
• Leasehold Reforms: Completing leasehold reforms by capping ground rents at £250 and eventually reducing them to peppercorn. They also plan to end forfeiture misuse and ease the transition to commonhold.
• Renters Reform Bill: Despite the bill’s current status, they intend to abolish Section 21 and strengthen eviction grounds for tenants guilty of anti-social behavior.

Labour

• House-Building Targets: Labour will restore mandatory house-building targets immediately, aiming to build 1.5 million new homes during their term.
• Planning Authority Enhancements: They promise tough action to ensure planning authorities have up-to-date Local Plans and will fund additional planning officers.
• Brownfield-First Approach: A commitment to prioritise brownfield sites and protect the Green Belt.
• Private Rented Sector Overhaul: Labour plans to abolish Section 21 ‘no fault’ evictions immediately, empower tenants to challenge unreasonable rent increases, and raise standards.
• Warm Homes Plan: Doubling investment to upgrade 5 million homes with grants and low-interest loans for insulation, solar panels, batteries, and low carbon heating.
• Tax Reforms: While they won’t introduce capital gains tax on private homes, they will close loopholes benefiting private equity.

Liberal Democrats

• Increased Home Building: Targeting 380,000 new homes a year, including 150,000 social homes, through new garden cities and community-led developments.
• Fair Deal for Renters: An immediate ban on no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords.
• Right to Buy Powers: Giving local authorities the power to end Right to Buy in their areas.
• Abolishing Leaseholds: Abolishing residential leaseholds and capping ground rents to a nominal fee.

Reform UK

• Planning System Review: Fast-track planning and tax incentives for brownfield site development, with a ‘loose fit planning’ policy for large residential developments.
• Social Housing Law Reform: Prioritising local people and those who have contributed to the system, putting foreign nationals at the back of the queue.
• Landlord Tax Incentives: Scrapping Section 24 for landlords, allowing them to deduct finance costs and mortgage interest from rental income tax.
• Abolishing Renters Reform Bill: Rather than the scrapped bill, they propose boosting monitoring, appeals, and enforcement for renters with grievances.
• Leaseholder Protections: Ensuring all potential charges are transparent, enforcing Section 106 agreements, and making it cheaper and easier to extend leases to 990 years and buy freeholds.

What’s Next for Renters and Landlords?

The scrapping of the Renters Reform Bill marks a significant moment for the housing sector, but it doesn’t mean reforms are off the table. With most political parties advocating for changes to the PRS, renters and landlords alike should stay informed about upcoming policies that could reshape the housing landscape. As we move closer to the general election, the housing policies of each party will undoubtedly be a focal point for voters, and the future of renting in the UK will continue to evolve.

Stay tuned to our blog for the latest updates and expert insights on how these potential changes could impact you!