Long read: What to expect as Parliament reopens
As Parliament prepares to reconvene in September, all eyes are on the potential shifts in the private rented sector (PRS) under the new Labour Government. Public Affairs Officer Mia Rotaru explores the anticipated bills and legislative changes that could reshape the PRS in the coming months, offering insights into what landlords, tenants, and industry stakeholders should be prepared for.
The General Election on 4 July paused all parliamentary activities, including key legislation highlighted in the King’s Speech. But what should we expect once Parliament is back in session?
The Renters' Rights Bill
One of the most anticipated pieces of legislation is the Renters' Rights Bill. The previous government had introduced the Renters (Reform) Bill, but it did not become law before the election was called. The Labour government will now be introducing the Renters' Rights Bill, whichwhile potentially building on some of the ideas from the earlier proposal, will be a completely new bill. This means it will need to go through the entire parliamentary process from the start.
Housing Minister, Matthew Pennycook MP, recently confirmed that introducing the Renters’ Rights Bill is a priority for the Government, although he didn’t set a specific timetable.
The Bill is expected to introduce changes to the rental market, reflecting Labour's commitment to tenant rights. Its progress will be a focal point in the upcoming parliamentary period, with discussions expected to begin after the summer recess.
As this bill progresses through Parliament, we’ll be on hand to provide timely insights into what the proposed changes will mean for landlords. We are also planning webinars where you can hear directly from our team and ask questions about all the relevant updates. Additionally, we are committed to continuing our meetings with MPs and government officials to advocate for a fair PRS for both tenants and landlords.
Draft Leasehold and Commonhold Reform Bill
In addition to the Renters' Rights Bill, the Government is also the Leasehold and Commonhold Reform Bill. This legislation, due to be published in draft form, aims to enact remaining Law Commission recommendations to bolster leaseholders' rights.
The draft legislation is likely to give leaseholders more power to extend their leases and buy their freeholds, as well as enhance their ability to take over building management through the Right to Manage.
The Bill seeks to regulate ground rents for existing leaseholders, putting an end to unregulated and unaffordable costs. The Government is also committed to ending the practice of "fleecehold," where homeowners on private estates face unfair costs, by implementing new protections introduced in the Leasehold and Freehold Reform Act 2024.
Like the Renters' Rights Bill, Housing Minister Matthew Pennycook MP confirmed in a statement before the summer recess that the government is expected to act quickly. However, he highlighted that the timeline for the draft Bill is still not clear since it may be subject to broad consultation and additional parliamentary scrutiny.
We are planning to follow closely all the developments of the Bill and will offer detailed guides on how the changes could affect your rights and responsibilities as a leaseholder or landlord. Additionally, we will advocate on your behalf, engaging with the government to ensure that the final legislation is fair and balanced.
Planning and Infrastructure Bill
The Planning and Infrastructure Bill is another critical piece of legislation expected to gain traction in the autumn. This Bill aims to unlock more housing and infrastructure.
The legislation will streamline the planning process, making it quicker and more efficient, especially for major development projects that align with the government’s industrial, energy, and transport strategies. Notably, the Bill includes measures to upgrade the national grid and boost renewable energy sources.
Additionally, the Bill will reform compulsory purchase compensation rules, ensuring that compensation is fair but not excessive when important social infrastructure and affordable housing projects are being developed. The Government also intends to modernise local planning committees, increasing their capacity to improve decision-making and overall performance.
To support the Bill in boosting development, the English Devolution Bill will strengthen mayoral powers over strategic planning and introduce duties to produce Local Growth Plans to “kickstart their economies”.
Energy efficiency
Another area where we should expect more developments is energy efficiency. Ed Miliband MP, the Energy Security and Net Zero Secretary, confirmed that the Government will address requirements for landlords to raise the standard of their properties to a minimum energy performance certificate rating of C by 2030.
While there isn’t a clear indication of what to expect yet, we continue to push for clarity on what regulations on energy efficiency will mean for landlords, as well as a comprehensive plan.
Energy efficiency is becoming increasingly important, and we’re dedicated to help landlords stay ahead of the developments. We’ll be providing clear, actionable advice on how to meet new energy performance requirements and access available support.
Additionally, we’ll continue to advocate for realistic timelines and support mechanisms to help landlords make these improvements without undue financial strain.
The Budget
While the specifics of the 30 October budget are still unknown, there is growing anticipation that it could include measures aimed at enhancing support for housing and addressing property rights and rental regulations - with government not ruling out changes to Capital Gains Tax.
Our submission ahead of the budget will make the case for measures to boost investment in the PRS, and we’ll be providing detailed analyses and breakdowns of the budget’s implications as soon as it is announced.
The Government's ambitious agenda points toward significant changes for both landlords and tenants. As we enter this period of significant legislative activity our commitment to advocating for private landlords remains. To stay informed and ensure you're prepared for the changes ahead, we encourage you attend our upcoming webinars and keep an eye on our news site and social media channels.
