Suggested changes to the existing Section 21 in 2024

How does Labours Rental Reform impact a Landlords ability to gain possession of a rental property?

Here is some information that all Landlords should be aware of.

Suggested changes to the existing Section 21

Section 21 of the Housing Act 1988 is a legal process in the UK that allows landlords to evict tenants without having to provide a reason. It is often referred to as a "no-fault" eviction. 

Government have been talking about making changes to the process and banning the process altogether!

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Labours Rental Reform

The Labour Party, led by Keir Starmer, has proposed more extensive changes with an emphasis on tenant rights and protections. Key elements of Labour's rental reform include:

1. Abolition of Section 21:

   • No-Fault Evictions: Labour also intends to abolish Section 21 no-fault evictions, offering tenants greater security.
   • Stricter Grounds for Possession: Labour plans to introduce stricter grounds for eviction, ensuring that landlords can only reclaim properties for specific, justified reasons.

2. Rent Control and Stability:

   • Rent Cap and Control: Labour is considering broader rent control measures to keep rents affordable, which may include capping rent increases and regulating how much landlords can charge.

3. Enhanced Tenant Protections:

   • Stronger Rights: Labour's reforms include measures to allow tenants to challenge unfair rent increases and prevent landlords from engaging in practices like rental bidding wars.

4. Improving Housing Standards:

   • Decent Homes Standard: Similar to the Conservatives, Labour will implement a Decent Homes Standard but with potentially stricter enforcement mechanisms.
   • Awaab's Law: Labour will enforce Awaab's Law, which mandates quick action on issues like damp and mould, with significant penalties for non-compliance.

5. Tenant Fees and Deposits:

   • Ban on Fees: Extending the ban on tenant fees and ensuring that tenancy deposits are capped and protected.
   • Lifetime Deposits: Implementing a lifetime deposit system to facilitate easier moving for tenants.

6. Pet-Friendly Rentals:

   • Pet Rights: Allowing tenants to request to keep pets, with landlords only able to refuse on reasonable grounds and potentially requiring pet insurance.

Summary

As of todays date 29th July 2024 the reform bill has to be passed through parliament and made legislation, so the section 21 rule still stands.

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