What's on the Horizon for the Private Rented Sector?

As we ponder the future of the Private Rented Sector (PRS) in the UK, the question on everyone's lips is, "What changes are going to happen, and when will they become law?" It's a query that keeps cropping up, with landlords and tenants alike seeking clarity on the subject. Yet, at present, the answer remains elusive, and we'll explain why.

The Process of Turning a Bill into Law:

To comprehend the timeframe for these potential changes, we must first understand the legislative process. Bringing a bill into law is a lengthy and intricate journey. It must go through readings, committee stages, report stages, and final readings in both the House of Commons and the House of Lords. Only after receiving the Royal Assent does it become law.

As of now, the Renters Reform Bill is still in its early stages. With only the first reading completed, no date has been set for the crucial second reading. Additionally, given the upcoming general election, time is of the essence for the government if they wish to complete the process before potential political shifts.

Changes to the Draft Bill:

Even if the Renters Reform Bill manages to navigate its way through the legislative labyrinth, it is likely to undergo changes during the process. Typically, significant amendments occur at the committee stage, though there's no guarantee it will reach that point.

Notably, Secretary of State for Levelling Up, Housing and Communities, Michael Gove, has hinted at amending the bill to prevent landlords from imposing blanket restrictions on families and pets. The government is also open to reevaluating their plans regarding student lets. Consequently, the fluidity of the bill's content makes it impossible to predict its final form.

Political Dynamics at Play:

The shifting sands of politics add another layer of uncertainty to the equation. Speculations suggest that certain factions within the Conservative party oppose the bill's provisions, particularly the removal of section 21, which allows for no-fault evictions. This purported resistance could explain potential delays or alterations to the bill.

Enter the Labour Party:

To gain a broader perspective, we turn to the Labour Party and their housing plans. In their "breaking down barriers" mission statements, housing appears on page 18, with a reference to the Private Renters Charter. However, the specific details of this charter remain elusive.

If we are to believe the rumours, the charter aims to end section 21 evictions, reduce landlords' eviction powers concerning tenants in arrears, implement four-month notice periods, explore portable deposits for tenants, permit pet ownership, allow reasonable alterations to rental properties, create a national landlord register, and introduce a legally-binding decent homes standard in the PRS. However, given the contentious nature of some of these proposals, their journey to becoming law could be lengthy, potentially surpassing the promised 100 days.

Keir Starmer, the Labour leader, is undoubtedly aware of the importance of maintaining a delicate balance between tenant rights and landlord interests. He likely understands that keeping landlords onside might be necessary until adequate social housing can be developed to alleviate the housing shortage for low-income families. Hence, it wouldn't be surprising if the Private Renters Charter undergoes revisions or quietly fades away to accommodate the complex realities of transforming housing laws.

So, the road ahead for the Private Rented Sector is filled with uncertainties. While change is certainly on the horizon, the timing, nature, and extent of those changes remain shrouded in the murkiness of the legislative process and political dynamics. As such, it's difficult to predict any significant shifts in the immediate future. Only time will tell how these potential alterations will unfold, and we should keep a close eye on the developments in the political landscape. Until then, we can only speculate.