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The newly renamed Ministry of Housing, Communities and Local Government (formally the Department for Levelling Up, Housing and Communities) led by Deputy Prime Minister Angela Rayner is shifting ‘back to basics’, with Rayner pronouncing an end to the “gimmicks and slogans” — a clear shot at levelling up.
What this means for property managers around the UK remains to be seen, but both Rayner and new Housing Minister Matthew Pennycook have indicated strongly, through their words and previous actions in parliament, what changes are ahead.
Matthew Pennycook vs Section 21
Though the Renters (Reform) Bill failed to make it through parliament into law during the pre-election wash-up period, all indications from Labour suggest that its most controversial point, the scrapping of Section 21 evictions, is still on its way.
Many in the lettings sector are urging the Labour Government to offer more clarity, and to reform the courts before eliminating no-fault evictions. However, landlords may find themselves disappointed.
In a debate on amendments to the Renters (Reform) Bill on 24 April 2024, Matthew Pennycook, as shadow Housing Minister, said that it was “essential that [the Bill] progresses,” as “Labour has consistently argued that the case for fundamentally reforming the private rented sector is as watertight as they come… The sector should have been transformed a long time ago.”
Figures within the Labour shadow government prior to the election were often cited saying that Section 21 evictions would be scrapped “immediately”, “at the earliest opportunity” or “within the first 100 days.” Though now-Deputy Prime Minister Angela Rayner seems to be backing down, suggesting that was a “simplistic way of looking at it”, it still seems highly likely that no-fault evictions will be scrapped.
In that same debate, Pennycook heavily implied that ensuring court reform was a lower priority than passing a commitment to scrapping Section 21 by a certain date, and that court reform could be implemented using a timeline based on that, rather than the other way around. He said:
“We should have clarity about precisely what are the improvements the Government think are necessary. Let us have metrics and let us have timelines, and then we can have an open and transparent conversation about precisely what “ready” means. At the moment, we are entirely in the dark… Even if a future Lord Chancellor were to assess that the courts were more than ready, it remains for the Secretary of State to determine whether they wish to make the relevant commencement order.”
As a strong advocate of rental reforms, Pennycook could set a date for the scrapping of Section 21 evictions before the courts have been reformed, not after.
Pennycook also introduced an amendment to the Bill during its third reading proposing to prevent landlords from serving evictions within two years of a tenancy beginning. Though this has not yet been mentioned as a policy in the new Government, landlords should be aware of what may be on the horizon in the next 5 years.
Jonty Shepheard
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