A balanced rental market is vital for both tenants and landlords. The Renters (Reform) Bill, outlined in the Conservative Party’s 2019 manifesto, aimed to create this balance by eliminating Section 21 'no fault' evictions and enhancing landlords' rights to reclaim their properties. However, with the General Election announcement on July 4, the Bill was unable to secure Royal Assent.

Consequences of Parliamentary Dissolution

The Renters (Reform) Bill had made significant strides, having passed through the House of Commons and entered the committee stage in the House of Lords. Unfortunately, it did not reach the ‘wash up’ stage before the dissolution of Parliament on May 30, 2024, effectively stalling its progress.

The dissolution signifies the end of the current Parliament, leaving all House of Commons seats vacant. As the Bill was not included in the final legislative timetable on May 24, it cannot advance any further, leaving its fate now in the hands of the next government following the election.

Significance of the Renters (Reform) Bill

Tenant Security
A core aim of the Bill is to abolish Section 21 'no fault' evictions, thereby increasing security for tenants. This reform would prevent landlords from evicting tenants without valid justification, fostering greater stability in the rental market.

Landlord Rights
At the same time, the Bill also guarantees that landlords possess reasonable grounds for repossessing their properties when necessary. By balancing tenant protections with landlord rights, the Bill aimed to create a more appealing environment for investment in the private rental sector.

Uncertain Future of the Renters (Reform) Bill

The future of the Bill remains unclear. Should the Conservative Party retain power in the upcoming election, the Bill would need to be reintroduced and go through the legislative process again, which is a considerable setback.

Possible Outcomes After the Election

• Conservative Majority: If the Conservatives achieve a majority, they may choose to reintroduce the Bill, possibly revising it based on prior feedback and strategic considerations.

• Labour or Coalition Government: If Labour or a coalition forms the next government, there could be a shift in approach regarding rental market reform, altering specific provisions and priorities. More details will emerge with the Labour Manifesto release on July 4.

Recommendations for Landlords

During this period of uncertainty, it is crucial for landlords to stay updated on legislative changes and prepare for potential reforms. Understanding your property portfolio and ensuring compliance with current tenancies is essential. Engaging with knowledgeable lettings agents, educational institutions, membership organisations, and legal advisors will provide valuable insights and help manage your portfolio effectively under future regulations.

Preparing for the Future

The Renters (Reform) Bill represents a pivotal move towards a more equitable rental market. However, its advancement is currently stalled due to the impending General Election. Landlords must remain alert and seek expert legal counsel to successfully navigate this evolving landscape.