What will happen with the Renters’ Reform Bill now an election has been called?

The Prime Minister, Rishi Sunak, has today announced that a General Election will be held on Thursday, 4th July 2024, meaning Parliament will be dissolved next Thursday, 30th May.

Inflation for April has just been announced at 2.3%, the lowest in three years, leading to heightened expectations of a reduction in interest rates, which will positively impact many who have been subjected to the squeeze on their finances caused by the cost-of-living crisis. Rishi Sunak obviously thinks this is his best possible chance of winning an election, despite being 23% behind Sir Keir Starmer’s Labour Party.

What’s the latest on the Renters’ Reform Bill?

The bill has been much amended since its initial publication, providing some reassurance to landlords by delaying the implementation of the ban on no-fault evictions until the courts are in a better situation to deal with other types of eviction, creating effective minimum terms of six months, and adding a provision for the eviction of student tenants to enable landlords to continue to let in line with the academic year. The changes have not gone so far as to alleviate the concerns of student property owners about the possibility of student tenants moving out midway through an academic year, leaving them with vacant property until the start of the next academic year.

For property investors, the big question is what will happen with the looming Renters’ Reform Bill? 

The Renters’ Reform Bill  is currently in the House of Lords at the Committee stage. When Parliament is dissolved on 30th May, all legislation in progress will fall. In the days beforehand, some bills may be pushed through, but this would require the agreement of the Opposition, which is very unlikely in this instance as it would give the Conservative Party a success to campaign on, and the Labour Party want to go much further than the bill in its current form. This means it is more than likely the bill will not be passed.

If the bill is not passed, it’s not good news for landlords. If the polls are right, and the Labour Party win; they will very likely significantly extend their own version of the bill, taking more rights away from landlords, who are unfortunately a very easy and popular scapegoat for political parties to bash.

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