With the Labour Party’s recent victory on July 4, 2024, housing in England may be getting a reform.
The private housing rental market has been a topic of intense debate and concern for years, with issues ranging from affordability to tenant rights and housing quality. As the political landscape shifts, the Labour Party has put forward its vision for addressing these challenges in its latest manifesto.
Clare Good and Aisling Beevers, consider how the proposals for England compare to Wales’ reforms through the Renting Homes (Wales) Act (RHWA).
Labour’s Housing and Rental Sector Manifesto
Prior to the election, the Renters Reform Bill had been drafted. It was not prioritised for passing prior to the general election, and therefore it will be over to Labour to consider reforms for renters.
Labour’s manifesto sets a comprehensive plan to address the private rental sector, including a commitment to resurrect key elements of the Renters Reform Bill, and:
At the heart of their proposals is the immediate abolition of Section 21 ‘no fault’ evictions
Section 21 Notices allow landlords to evict tenants without providing any reason at all. This move by labour aims to provide greater security for tenants, preventing them from being evicted in ‘no fault’ situations.
This is something that has been debated for many years in parliament, and previously pushed back on due to concerns over whether the courts were fit for such a change.
A pledge to empower renters to challenge unreasonable rent increases
This is seen as a step towards addressing the issue of affordability in the private rental sector. However, no information has been given as to what this will look like, and how it will differ to the rights already available (i.e. the right to challenge a Section 13 Rent Increase notice via the First Tier Tribunal)
Extension of ‘Awaab’s Law’ to the private sector
This law, named after two-year-old Awaab Ishak who died due to exposure to mould in social housing, would require landlords to address health hazards promptly. By extending this to private rentals, Labour aims to raise standards across the entire rental market and ensure that all tenants have access to safe, healthy living conditions.
Comparison with the RHWA
The RHWA, which came into force on December 1, 2022, was a significant overhaul of housing law in Wales, brought in by Welsh Labour.
The RHWA introduced several key changes that align with some of Labour’s proposals:
‘No fault’ evictions
Whilst the RHWA did not abolish these, it has effectively banned them for the first year of a tenancy. A landlord cannot service a ‘no fault’ notice within the first 6 months, and the minimum notice period if 6 months.
This aligns with Labour’s pledge to abolish Section 21 evictions, although the Welsh approach provides a longer notice period rather than outright abolition.
Change in terminology
The Welsh reforms also introduced the concept of ‘occupation contracts’ to replace traditional tenancies, aiming to simplify and standardize the legal relationship between landlords and tenants (now called ‘contract holders’).
While Labour’s manifesto doesn’t propose such a fundamental change in terminology, both approaches share the goal of clarifying the rights and responsibilities of both parties.
Property Standards
In terms of property standards, the RHWA introduced a ‘fitness for human habitation’ requirement. There is subordinate legislation which sets out what that means in practice, and can be amended by the Welsh Ministers.
Rent increases
The RHWA also provides stricter rules around increasing rent. Specific notices must be served, and only one can be served a year.
However, there is no mechanism for occupiers to dispute the increases (unless a tenant is a regulated or protected occupier).
Potential Implications and Challenges
If Labour were to implement their manifesto pledges, the impact on the private rental sector could be significant.
Comparing Labour’s proposals to the RHWA, it is clear that there are some similarities. However, Labour’s proposals for England go far beyond the RHWA in terms of tenant’s securities and rights.
Only time will tell whether the manifesto pledges will become reality, and whether Wales will follow.
If you require assistance with residential tenancy issues in either England or Wales please contact c.good@capitallaw.co.uk
