Following the main parties' recent launch of their manifestos, we consider how each party proposes to address reform in the housing sector.
The Conservative Party pledges to:
- Pass the Renters Reform Bill and deliver court reforms to abolish 'no fault' evictions.
- They will deliver the court reforms and fully abolish Section 21 'no fault' evictions.
- Strengthen the ability of landlords to evict private tenants for anti-social behaviour.
- The Conservatives plan to strengthen the grounds for landlords to evict private tenants who engage in anti-social behaviour.
- Complete the process of leasehold reform, cap ground rents, and bring an end to the misuse of forfeiture.
- Although the Leasehold and Freehold Reform Act 2024 has passed it is not yet in effect, and the Conservatives have pledged to complete the process of leasehold reform and have renewed their commitment to cap ground rents at £250 per annum.
The Labour Party pledges to:
- Immediately abolish 'no fault' evictions.
- Like the Conservatives, Labour also plans to abolish Section 21 'no fault' evictions. However, they go further in saying they will do so "immediately". They also propose to extend the Renters Reform Bill further than the Conservatives.
- Empower private renters to challenge unreasonable rent increases.
- Labour pledges to protect tenants from rent increases, which will fetter landlords' ability to increase rents and ultimately affect their rental income yields.
- Extend "Awaab's Law" to the private rental sector.
- Labour says it will extend 'Awaab's Law' to the private sector (rather than it applying only to the social housing sector), which would mean private landlords needing to address severe hazards under strict timeframes.
- Ban new leaseholds for flats and ensure commonhold is the default tenure.
- Labour's position in respect of ground rents is understood to be similar to the Conservative party's pledge to introduce a cap, but they seek to go further in relation to reforming the leasehold system.
The Liberal Democrats pledge to:
- Ban 'no fault' evictions for renters.
- Similar to both Labour and the Conservatives, the Liberal Democrats also plan to ban 'no fault' evictions.
- Create a national register for registered landlords.
- It is not clear from the Liberal Democrats' manifesto precisely what the national register would mean for landlords, however it is likely to result in more administration for landlords with the objective of increased transparency.
- Abolish residential leaseholds and cap ground rents.
- Similarly to the other parties, the Liberal Democrats pledge to cap ground rents. They say such charges will be capped at a "nominal fee".
As the General Election approaches, the focus shifts to how the next government will address the need for reform in the housing sector. Landlords should be watching closely, hoping for clarity in the changes to the housing sector.