Labour has promised a sweeping reform of the private rented sector should it triumph in the upcoming election on 4 July. Unveiling their manifesto today, the party pledged to abolish Section 21 repossessions “immediately” and outlined plans to empower renters and raise housing standards.
The manifesto declares Labour’s commitment to preventing the exploitation and discrimination of private renters, empowering them to challenge unreasonable rent hikes, and extending “Awaab’s Law” to the private sector.
NRLA Chief Executive Ben Beadle emphasized the need for a reasonable adjustment period for the sector. “All of the main parties are committed to ending Section 21. What matters is ensuring the replacement system works, and is fair, to both renters and responsible landlords,” Beadle stated. He underscored the necessity for landlords to have robust grounds for possession and for the system to operate efficiently when required.
“We stand ready to work constructively with a potential Labour Government to achieve this and ensure a smooth transition to the new system. This needs to include giving the sector time to properly prepare for it,” he added.
Housing Proposals
Labour’s manifesto also includes ambitious housing proposals such as:
- Building a new generation of new towns.
- Updating the National Planning Policy Framework to reinstate mandatory housing targets.
- Funding new planning officers by increasing stamp duty for non-UK residents.
Additionally, Labour aims to deliver the largest increase in social and affordable housebuilding in a generation by:
- Strengthening planning obligations to ensure new developments provide more affordable homes.
- Adjusting the Affordable Homes Programme to maximize home delivery from existing funding.
- Supporting councils and housing associations to enhance their capacity and contribute more significantly to affordable housing supply.
- Prioritizing the construction of new social rented homes and protecting the existing stock.
- Reviewing protections for leaseholders from costs and accelerating remediation efforts nationwide.
- Ending the “feudal leasehold system” and collaborating with mayors and councils to end homelessness.
Energy Efficiency and Welfare Proposals
On energy efficiency, Labour plans to enforce minimum standards for private rented sector homes by 2030, though specific standards were not detailed. The manifesto also introduced a “Warm Homes Plan” offering grants and low-interest loans to improve energy efficiency and reduce bills, with unclear availability for PRS landlords.
Regarding welfare, Labour proposes a review of Universal Credit to ensure it makes work pay and tackles poverty, although details on the review remain unspecified.