How the Lettings landscape looks under the new Labour Government
The UK Labour Party has committed to immediately abolishing Section 21 of the Housing Act 1988, a move that has significant implications for landlords and tenants alike.
Section 21, often referred to as the "no-fault eviction" clause, allows landlords to evict tenants without providing a specific reason, provided they follow the correct legal procedure.
Labour's plan to abolish Section 21 aims to enhance tenant protections and “prevent private renters being exploited and discriminated against” (Source: Labour’s Manifesto). This proposal aligns with the broader goal of creating a more balanced and equitable rental market, and increasing security and stability for vulnerable families in particular. However, this shift also means that it is more important than ever for landlords to vet tenants appropriately.
Thorough background checks, including credithistory, employment verification, and references from previous landlords, can mitigate risks associated with rent arrears, property damage, or antisocial behavior.
Labour have also committed to extending Awaab's Law. Named after Awaab Ishak, a two-year-old who tragically died following prolonged exposure to mould in social housing, Awaab’s Law sets clear timescales for investigating and resolving health and safety hazards. Currently applicable to the social sector, Labour's proposal to extend this law to the private rental sector signifies a commitment to improving living conditions for all tenants.
Labour's plans to abolish Section 21 and extend Awaab's Law indicate the start of a transformative period for the rental market. As the market becomes more regulated, it is more vital than ever that landlords stay informed about legal requirements and act accordingly to ensure they remain compliant with the law.
Hollywell Homes offer a full range of lettings services, including tenant qualification and vetting, rent collection and full property management. We are always happy to offer advice or guidance to new and existing clients alike, so feel free to call me on 01905 948848 or email sue@hollywellhomes.co.uk
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