Changes to Housing Law from the Labour Government

Introduction 

The UK General Election, held on 4 July 2024, has brought the Labour government into power, promising significant changes in housing law. Understanding these changes is crucial for landlords and for tenants. This blog will outline the key reforms and their implications. 

What Are the Key Changes to Housing Law?

How Will the Government Increase Housing Supply?

The new government has committed to addressing the housing crisis by significantly increasing the housing supply. They have set an ambitious target to build 300,000 new homes per year. This initiative aims to provide much-needed relief for first-time buyers and renters who are currently facing high prices and intense competition in the housing market. 

How Will Affordable Housing Initiatives Be Expanded?

The new government plans to expand affordable housing programmes significantly. This includes increased funding for social housing and shared ownership schemes. These initiatives are expected to improve access to affordable homes for low-income families and key workers, addressing the current affordability challenges in the housing market. 

The Government has also said it will review the discounts available for right to buy for council tenancies and seek to protect new council social housing from being lost to the right to buy. 

Changes to Private Sector Tenancies

The Government has committed to making significant changes in a new renters reform bill. This bill will be designed to improve tenant rights and is likely to include several key provisions: 

• Abolition of Section 21 ‘no-fault’ evictions: Landlords will no longer be able to evict tenants without providing a valid reason, offering greater security to renters.
• Ending fixed term tenancies: Tenancies will be periodic, with no fixed term. Landlords and possibly tenants will not be able to give notice for an initial pe
• National Register for Landlords: This will create a comprehensive database of landlords, promoting accountability and ensuring compliance with housing standards.
• Extending ‘Awaab’s Law’ to the private sector. This will likely provide for mandatory timescales for a landlord to take action when notified of a hazard in the rented property.
• Empowering tenants to challenge unreasonable rent increases: Tenants will be supported in some way to challenge ‘in tenancy’ rent increases in the Tribunal. 
• Stopping ‘bidding wars’ for a tenancy: Landlords and agents will be banned from instigating competitive bids for rent between prospective tenants.

What Is the Green Homes Initiative?

The government is placing a strong emphasis on making homes more energy-efficient through the Green Homes Initiative. This initiative includes: 

• Grants and Subsidies for Home Insulation and Renewable Energy Installations: Homeowners can receive financial assistance to improve the energy efficiency of their properties, reducing energy bills and promoting sustainability.
• Stricter Energy Efficiency Standards for New Builds: New housing developments will be required to meet higher energy efficiency standards, contributing to the government’s broader environmental goals.

Conclusion

The new government’s housing policies represent significant changes aimed at addressing long-standing issues in the UK housing market. Increased housing supply, tenant rights reforms, expanded affordable housing programmes, and energy efficiency initiatives are set to transform the landscape for homeowners, landlords and tenants. 

For those affected by these changes, it will be advisable to seek legal advice to understand how these reforms may impact their housing situation. When the details become clear, we will be here to provide expert guidance and support.