Landlords will face a Labour government keen on PRS reform

Landlords will face a Labour government keen to reform the private rented sector (PRS) after it won a landslide victory in the General Election.

Sir Keir Starmer will be the new prime minister, with deputy Angela Rayner set to make three housing policy announcements in the next few weeks.

That will include the building of 1.5m homes and the possibility of PRS reforms.

Ms Rayner has said previously that Section 21 ‘no-fault’ evictions would end on day one but there’s no sign that will happen.

However, the property market is struggling, and house prices fell 0.2% in June, Halifax reports.

Worst result in their history

The Conservatives have lost power after 14 years to rack up the worst result in their history.

Sir Keir said: “Change begins now.”

Tory leader Rishi Sunak said the scale of the Labour victory was a ‘sobering verdict’.

The Lib Dems have also made huge gains, while Reform has four MPs – including leader Nigel Farage – and have the third-highest number of votes nationally.

Eviction expert predicts surge in S21 notices

Eviction expert Paul Shamplina, of Landlord Action, said: “With Labour’s election win and their commitment to abolishing Section 21 ‘no-fault’ evictions, there will be significant concern within the landlord community today about the future of their properties and tenancies.

“Although Labour pledged to scrap Section 21 from day one, recent statements by Labour’s deputy leader, Angela Rayner, on LBC Radio, admitted that the practicalities of this promise are far more complex, as we already know.

“An immediate ban on Section 21 evictions is not feasible without first addressing the current inefficiencies within the court system.

“Rayner’s acknowledgment of this highlights the need for a balanced approach that considers both the rights of renters and the practicalities faced by landlords.”

Landlords serving Section 21 notices

Mr Shamplina adds: “Nevertheless, given Labour’s pledge, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months.

“Landlords are likely to act pre-emptively to protect their interests before any legislative changes take effect.

“At Landlord Action, we have already seen an increase in instructions for Section 21 notices as many landlords move to secure their rental income or prepare their properties for sale.

“The primary concern for landlords is that without the ability to use Section 21, they might face significant challenges in managing problematic tenancies effectively.”

‘Drive more landlords to take action’

He continued: “The uncertainty surrounding the timing and implementation of these changes is likely to drive more landlords to take action now, rather than risk being unable to address issues swiftly in the future.

“While the intention behind scrapping Section 21 is to protect tenants from unfair evictions, it’s crucial that the transition is handled carefully.

“This will help avoid unintended consequences that could reduce the availability of rental properties and ultimately harm both landlords and tenants.”

‘We congratulate Labour’

The chief executive of the National Residential Landlords Association, Ben Beadle, said: “We congratulate Labour on its election to office.

“The party’s manifesto committed to fundamental reforms to the private rented sector. This includes ending section 21 ‘no explanation’ repossessions.

“We stand ready to work constructively with the new government to ensure changes are fair and workable for tenants and responsible landlords and are sustainable for the years to come.”

He added: “It is vital, however, that reform does not make worse an already chronic shortage of rental properties to meet demand.”

‘What’s happening with renters reform’

Oli Sherlock, the managing director of insurance at Goodlord, said: “The new Government must give the market clarity on what’s happening with renters reform.

“If similar legislation to the previous Bill is set to go through, we need clear information on details and timelines.

“The election-induced delay is also an opportunity to ensure concerns around Section 21 and court backlogs are effectively addressed before legislation hits the statute books.”

He adds: “Lastly, we need consistency of leadership. This isn’t Premiership football; we can’t afford to have another merry-go-round of Housing Ministers – the sector is far too fragile.

“Long-term planning, consistent leadership, and clarity over details is what the market is calling out for as we enter this new chapter.”

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