Liberal Democrats unveil housing policy: Abolish Section 21 and reinstate EPC targets

The Liberal Democrats have promised “to deliver a fair deal for renters” by abolishing Section 21 immediately and reintroducing EPC C targets for rented properties.

The party’s manifesto proposes making three-year tenancies the norm and creating a national register of licensed landlords.

For social housing, the party promises to protect social housing renters with a new rent-to-own model, allowing them to own their property in 30 years.

Thousands of renters at risk

Sir Ed Davey told the London Evening Standard, that renters face huge challenges in the housing market.

He said: “Across the country, thousands of renters are at risk of losing their homes at the mercy of exploitative no-fault evictions. The Conservatives promised to implement a ban back in 2019, but after five years of infighting, they have failed to honour that commitment.

“That is why Liberal Democrats today are announcing our fair deal for renters.”

Mr Davey says the Liberal Democrats are committed to building 380,000 new homes a year across the UK including 150,000 social homes.

The manifesto also includes plans to reintroduce the requirements for landlords to upgrade the energy efficiency of their properties to EPC C or above by 2028 which the Liberal Democrats claim will cut energy bills and end fuel poverty.

Promise to help social renters

The Liberal Democrats plan to help social renters with a new rent-to-own model will enable tenants who can’t afford a deposit to gradually own their home by turning rent payments into ownership over 30 years.

The party pledges to enforce clear standards for social housing. This includes setting strict time limits for repairs and recognising tenant panels to ensure renters have a say in landlord governance.

The party also pledges to abolish residential leaseholds and cap ground rents to a nominal fee.

Reaction to manifesto

Reacting to the Liberal Democrats manifesto, Nathan Emerson, chief executive officer, at Propertymark, said: “It is encouraging to see housebuilding targets being taken seriously within the first manifesto released, especially a realisation that more social homes are required so that people have access to a greater provision of housing.

“Propertymark has always believed that ground rents should be capped, so it is good to see that similar proposals are being referenced in the Liberal Democrats’ manifesto. It will be interesting to see what mechanism they intend to use should they succeed in ending no-fault evictions.”

When asked by Property118 about the method for abolishing Section 21, the Liberal Democrats stated they would legislate to end no-fault evictions but did not provide specifics on the mechanism.

Michael Cook, chief executive officer, of Leaders Romans Group, said the manifesto fails to address solutions to the housing crisis.

He said: “While the Liberal Democrats’ manifesto aims for a fair deal across various sectors, it unfortunately falls short of addressing the housing crisis comprehensively.

“The solitary focus on renters’ rights, essentially a phoenix of the unpassed Renters (Reform) Bill with a twist of mandating three-year tenancies, misses a significant opportunity. More robust and diverse housing policies are crucial to genuinely tackle the pressing issues faced by millions in need of affordable and secure housing.”

Imbalance of power with landlords

Generation Rent says whilst the Liberal Democrat housing reforms are positive, it is unclear on how they will work in practice.

Dan Wilson Craw, deputy chief executive of Generation Rent, said: “A commitment to ‘immediately’ ban no-fault evictions is a good first step.

“However, the commitment to three-year tenancies by default is confusing – it is not clear whether tenants could move home within the three years if their circumstances change, or if landlords would need a reason to evict at the end of the period.

“The abolition of no-fault evictions must be paired with open-ended tenancies to provide tenants with both security and flexibility.”

Mr Craw adds: “A national register of landlords is essential, with England the only UK nation without one. But by specifying ‘licensed landlords’ begs the question of whether the party would require all landlords to be licensed as well, or just apply the register to the roughly 7% of landlords who currently need a licence.”

Mr Craw says without rent caps, renters will continue to suffer.

He said: “The manifesto contains positive proposals with the potential to improve the affordability and quality of rented homes.

“However, without a more comprehensive offer of reform to renting, including limits to rent increases, renters will continue to suffer from the same imbalance of power with our landlords that has undermined our security for so long, and this must be addressed by the next government.”

Increase council tax for second homes

The party also plans to give local authorities new powers to control second homes and short-term lets.

The powers will include increasing council tax by up to 500% for second homes and a stamp duty surcharge on overseas residents purchasing these properties.

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