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Thursday briefing: How the long-awaited renters’ reform bill could transform housing as we know it
By Nimo Omer,
6 hours ago
Labour’s renters’ rights bill will seek to enshrine rental rights in law. Photograph: Justin Tallis/AFP/Getty Images
Good morning.
In 2019, Theresa May’s Conservative party pledged to end no-fault evictions (that is, where landlords oust tenants without giving a reason), and introduced the first iteration of the renters’ reform bill. But pressure from lobbyists , interest groups and Tory backbenchers who were themselves landlords led to countless delays and the eventual watering down of the proposals. Charities and advocacy groups expressed concern about the sloth-like progress of the bill, but that did little to hurry the previous government.
Fast forward to 2024, and Labour has decided to take up the mantle, debuting a new renters’ rights bill designed to give tenants protection from unscrupulous landlords. Stressing the urgency of the issue, the deputy prime minister, Angela Rayner, said that there would be “no more dither and delay” in scrapping no-fault evictions. Landlords could also now face fines of up to £7,000 if their properties do not meet a “decent homes standard”. The long-delayed bill also abolishes blanket bans on renting to benefits recipients or people with children and pets.
With the help of Guardian political correspondent Kiran Stacey , today’s newsletter unpacks how this bill differs from its predecessor, and whether it will really make a difference to hard-pressed renters. That’s right after the headlines.
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Business | The British steel industry has suffered a blow after confirmation that 2,500 jobs will go at the Port Talbot steelworks despite a £500m taxpayer-backed deal for the south Wales plant.
UK news | Oliver Campbell, a man with severe learning difficulties who was jailed for life for the murder of a shopkeeper three decades ago after confessing in police interviews, has had his convictions quashed by the court of appeal.
In depth: What Labour’s plans really mean for renters
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Section 21
Although the renters’ reform bill was initially introduced specifically to abolish no-fault evictions, last October – after extensive landlord lobbying – the housing department introduced a clause that the ban would only come into effect after reforms to the court system. As there were no dates or a timeline to these reforms, it effectively created an indefinite delay. In the end, the bill did not go through at all but, either way, there was no real prospect of an end to no-fault evictions.
Labour’s bill, on the other hand, will immediately axe such evictions (technically known as a section 21 notice) for new and existing properties as soon as it comes into force, potentially in a matter of months.
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Bidding
There is no worse feeling than viewing a property that is suspiciously within budget, bigger than a shoebox and with no signs of visible mould or decay, only to realise that if you want any chance of getting it you’ll have to cough up hundreds of pounds over the asking rate.
Blind bidding on rental properties is a highly controversial practice that has become commonplace in bigger cities, where supply is particularly scarce and demand is high. In 2023, tenants typically paid an extra £100 above asking rate for their home , driving up rents in cities across Britain. The bill will “crack down on those who exploit the housing crisis by forcing tenants to bid for their properties” and they will be banned from asking for, encouraging or accepting any bids over this price. Similar rules were brought in by a number of Australian states where there were problems.
The ban goes further than many were anticipating and has been welcomed by renters rights groups, though landlords have suggested that the change will lead to an increase in asking prices of rentals.
In another bid to slow down surging rental costs, landlords will also no longer be able to write mid-year rent increases into leases.
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Awaab’s law
After the tragic death of toddler Awaab Ishak, the previous government introduced Awaab’s law, which forces social landlords to follow strict deadlines to inspect and repair hazards to prevent deaths in social housing. The Conservatives previously said that this would not include private renters, but Labour has announced that it will be expanding the law to include them.
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The logic behind the bill
From a purely political perspective, Labour has spearheaded this bill “because they can embarrass the Tories with it”, Kiran says. “The previous government promised to deliver on renters’ reform and never did, so it’s quite a good thing to bash them with.”
The bigger policy picture, and the more dignified reasoning, is that the government believes that housing insecurity is a major drag both on people’s quality of life and on economic growth. Housing precarity makes almost every other aspect of a person’s life more difficult. For children, it can have a lifelong effect on their mental and physical health . “It’s difficult to get work, to save, to start a family, if you don’t have somewhere secure to live,” Kiran says. It can also put a strain on the public sector in other ways as well , he adds, making it a long-term cost-saving measure.
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The response
Landlords have been lobbying hard against this bill – analysis by PoliticsHome earlier this year found that ministers had met with lobbyists for landlords and estate agents twice as often as they did groups representing renters – but ultimately they were resigned to their fate once Labour came into power. “The landlord lobbyists that I have spoken to have said that it’s a relief just to get some certainty, rather than constantly wondering about what’s to come,” Kiran says.
However, they are not taking these changes lightly. Landlords have warned that they are willing to skirt the rules, raise rents and find loopholes in the bidding ban. Advocacy groups are broadly pleased with the changes, particularly the ban on no-fault evictions, however some are disappointed by the absence of tougher measures such as rent caps.
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The messaging
In a week where Labour has brought out a relatively popular policy, the headlines have been dominated by infighting about the winter fuel allowance and early release of prisoners . There has been little mention of this thought-through flagship bill, which polls well.
“I think partially what has happened is that they haven’t really talked about what they are doing and want to do in a positive or strategic way,” Kiran says. “After Grenfell, this could have been a week to talk about housing, improving safety, getting rid of rogue builders and protecting renters.” Instead, Kiran adds, every time Keir Starmer speaks, it feels like it’s about “taking money away from people”.
The bill will be a welcome step towards rebalancing an off-kilter power dynamic between renters and their landlords, but these measures do not properly address the underlying issue that caused such an imbalance to proliferate: the chronic housing shortage. It remains to be seen the extent to which this new bill and the governments wider housing strategy will make life easier for the average renter.
What else we’ve been reading
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Sian Cain’s breakdown of Taylor Swift ’s endorsement of Kamala Harris is a must-read on the singer’s influence and how a nation hangs on her words (or lack thereof). “Somehow,” Sian writes, “Donald Trump did what no one else could do: annoy Taylor Swift enough to finally say something about this year’s presidential race.” Charlie
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Basketball | WNBA players and their union have criticised recent comments from the league’s commissioner, Cathy Engelbert, that failed to condemn racist and bitter criticism from fans toward rising stars Caitlin Clark and Angel Reese.
The front pages
“Thousands dying due to NHS delays, inquiry finds” is the Guardian’s lead story today. “No more sticking plasters! It’s ‘reform or die’ for NHS” – that’s the Daily Express while the Mirror says “Top doctor’s shock report – a decade to fix our broken NHS”. The Daily Mail’s version is “NHS must reform or die, says PM”. The job is one to be got on with in the Times – “Labour orders biggest NHS reform in history” – and in the i: “ NHS shake-up biggest since 1948, Starmer promises UK”. The Telegraph’s focus is pecuniary: “NHS does less despite record funding”. The presidential race leads the Financial Times : “Trump camp fights to regain footing after Harris delivers blows in debate”. “After 33 years, I’m innocent” is the Metro’s splash, about the exoneration of Oliver Campbell.
Today in Focus
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Cartoon of the day | Ella Baron
The Upside
A bit of good news to remind you that the world’s not all bad
Is the solution for the ills of western society to retreat to central Italy and start a commune? Maybe not, but one experimental community is aiming to at least explore how to create “collective resilience” in the face of enormous societal challenges.
In 2022, Benjamin Ramm – who says his goal is to create a global network of communities to respond to globalisation – sold his flat in London and bought an unoccupied hotel in rural Italy as a base for Honeydew, an eco-community that arose from the isolation of the pandemic. Guardian video producer Richard Sprenger learns more about how Honeydew works in this short film . And dive into the archives for Alexander Hurst’s experience at the commune, which he chronicled in a 2023 comment piece .
Sign up here for a weekly roundup of The Upside, sent to you every Sunday
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