The UK’s PM Sir Keir Starmer, has made various comments and proposals regarding the private rental property market as part of his broader housing policy agenda. His position reflects Labour's focus on addressing the housing crisis, improving tenant rights, and increasing the availability of affordable housing.
In the second King's Speech of his reign, King Charles unveiled 40 bills that Sir Keir Starmer and his party want to pass. It featured three that aim to improve the property market - Renters’ Rights Bill, Draft Leasehold and Common-hold Reform Bill and Planning and Infrastructure Bill.
The Renters' Rights Bill presents Labour's commitment to improve private renting for 11 million tenants, with ambitions to end Section 21 ‘no fault’ evictions, empower tenants to challenge issues such as rent increases and introduce new laws to end rental bidding wars by landlords and letting agents.
Key Aspects of Keir Starmer's Stance on the Private Rental Market:
Regulating the Private Rental Market:
Rent Control: Starmer has voiced support for rent controls, particularly in high-demand areas. The idea is to cap rent increases and make housing more affordable for tenants. It has led to discussions about its potential economic impact.
Stronger Tenant Rights: Labour under Starmer advocates for enhancing tenant protections, including longer-term rental agreements and ending "no-fault" evictions (Section 21 evictions). This policy is aimed at providing greater security to renters.
Abolition of Section 21 "No-Fault" Evictions: Landlords will no longer be able to evict tenants without providing a reason. This increases security for tenants but could make it harder for landlords to regain possession of their property.
Strengthened Grounds for Possession: To compensate for the removal of Section 21, the grounds under Section 8 will be strengthened, allowing landlords to regain possession for reasons such as sale of the property, rent arrears, and anti-social behaviour.
Periodic Tenancies: All tenancies will become periodic, removing fixed-term tenancies. This change aims to provide more flexibility for tenants but may introduce uncertainty for landlords.
Pets: Amongst the new rules announced under the Renters’ Rights Bill is a clause on allowing pets in rented accommodation. It was announced in Parliament (July 17) as part of the King's Speech, which set out Labour's legislative agenda after winning the general election. It comes as Labour intends to make it easier for tenants to find a place to live by increasing the number of pet-friendly homes. If passed, these new rules could mean that landlords will no longer be able to issue a blanket ban on tenants living with pets, and they will instead have the right to ask the landlord for permission to live with pets at the property. The landlord must then consider your request and cannot “unreasonably” refuse. The law also adds: "Landlords will be able to request insurance to cover potential damage from pets if needed." This means that tenants must be willing to pay to cover the landlord’s insurance in case of damage.
2. Affordable Housing:
New Homes: Starmer has emphasised the need to build more affordable homes to ease the pressure on the private rental market. Labour has proposed building hundreds of thousands of new homes annually, with a significant proportion being affordable or social housing.
Social Housing Expansion: Starmer supports a significant increase in social housing construction, which would reduce the reliance on the private rental market for low-income families.
A spokesperson says: “…The last few years have marked the most challenging housing market conditions since the Global Financial Crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association.
“Looking ahead, the new UK Labour Government are moving forward with a significant legislative move aimed at accelerating the development of infrastructure and the construction of 1.5 million homes in England.
3. Regulating Landlords:
Labour under Starmer is working on measures to ensure that landlords maintain properties to a decent standard. This includes licensing schemes and tougher penalties for landlords who fail to meet basic housing standards.
Prime Minister Sir Keir Starmer said: "Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve. We will introduce tough new protections for renters, end no fault evictions and raise standards to make sure homes are safe for people to live in."
Amid his speech, King Charles then addressed the rental sector as he said: “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession."
4. Environmental Considerations:
Part of Starmer's housing policy includes making homes, including those in the private rental sector, more energy-efficient. This aligns with Labour's broader environmental goals and could involve grants or subsidies to improve the energy efficiency of rented properties.
Political and Economic Context:
PM Starmer aim to address what many see as a broken housing market in the UK, where high rents, poor conditions, and a lack of affordable housing have become significant issues. However, his stance on rent controls and increased regulation of the rental market has attracted criticism from some quarters. Opponents argue that such measures could lead to a reduction in the supply of rental properties, as landlords may choose to sell rather than rent under stricter regulations.
In summary, Sir Keir Starmer's approach to the private rental market is centred on increasing tenant protections, expanding affordable housing, and imposing stricter regulations on landlords. These policies are part of Labour's broader effort to tackle the UK's housing crisis.
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