What does the new Labour government’s intended rental reforms mean for landlords and the rental market? 

…The latest reforms proposed by the Labour government aim to significantly change the landscape of renting in the UK, with various implications for landlords.

 

Abolition of Section 21 "No-Fault" Evictions: The Labour government intends to eliminate Section 21, which allows landlords to evict tenants without providing a reason, meaning that landlords must provide a valid reason for eviction, such as tenant misconduct or the need to sell the property. 

​

Implemented in order to provide tenants with more security and stability in their homes​, it does however, provide concerns for landlords around being able to evict troublesome tenants (blog.goodlord)​​ (lettingaproperty)​.

 

Enhanced Standards and Tenant Protections: Labour plans to introduce higher standards for rental properties, including extending "Awaab's Law" to the private sector, mandating that landlords address health and safety hazards, such as damp and mould, within strict timelines. 

The new Decent Homes Standard will also require properties to meet specific criteria, including adequate heating and safety features, with local authorities empowered to enforce these standards more robustly​ (blog.goodlord)​​ (lettingaproperty)​.

 

Regulation of Rent Increases: Proposed to regulate rent increases, allowing them only once per year, with a mandatory two-month notice period, to prevent tenants from facing unexpected and unaffordable rent hikes​ (lettingaproperty)​.

 

Tenant Rights and Information Access: A new Property Portal will be established to help landlords comply with legal obligations, and provide tenants with information about their rights and their landlords' compliance. 

Additionally, mandatory membership in a redress scheme will be required for all landlords​ (lettingaproperty)​​ (nrla.org)​.

 

Pet Insurance and Ban on Discriminatory Practices: allows landlords to require tenants to take out pet insurance to cover potential damages caused by pets. 

The reforms will also ban blanket bans on tenants with children, or those receiving benefits, addressing discriminatory practices and promoting equal access to housing​ (blog.goodlord)​​ (lettingaproperty)​.

 

Court and Possession Ground Reforms: Labour's approach to abolishing Section 21 will be immediate. New grounds for possession under Section 8 will be introduced, including mandatory grounds for landlords who need to sell or move family members in, and, a new ground for persistent rent arrears​ (nrla.org)​.

For landlords, these changes, whilst designed to create a fairer and more stable rental market, mean adapting to new regulations, potentially facing increased scrutiny and obligations, alongside inevitable higher costs and smaller margins. 

They will need to ensure compliance with higher property standards, navigate regulated rent increases, and adjust to new eviction processes. 

​

How can Phoenix Estates Inc assist landlords to navigate these changes?

 

We understand how these reforms could offer challenges to landlords in terms of compliance and profitability…we offer landlords peace of mind for longer by offering guaranteed rent for the term of our extended 3-5 year contracts, with a complete property management service as included as standard, everything from guest relations to maintaining the property to our impeccable show-home level.  

 

Our commitment to security means we only accommodate professionally referenced guests, and ensure we are legally compliant with all the relevant laws, procedures, regulatory bodies and insurances, as standard. 

Rest assured, here at Phoenix Estates we have you as well as your investment covered.

 

If you are a landlord, and would like to see how Phoenix Estates can make your life easier, please contact us HERE