General Election means Renters (Reform) Bill binned

Although the Renters (Reform) Bill has passed all the stages in the Commons and most of them in the Lords, it has run out of parliamentary time and won't now become law.

Following the surprise announcement by Prime Minister, Rishi Sunak that a General Election will happen on 4 July 2024, Parliament will be prorogued today (Friday, 24 May) with the full dissolution taking place on Thursday 30 May 2024.

We are currently in what is called the "wash-up" period, where the Government and official opposition will agree privately on which Bills will make it through to the Statute Book, and in what format. The Renters (Reform) Bill has run out of parliamentary time to become law. However, the Leasehold and Freehold Reform Bill is being debated today and should become law.

Renters (Reform) Bill

Then Prime Minister, Theresa May initially announced plans to abolish Section 21 no-fault evictions in April 2019 - a promise that was included in the Conservative manifesto later that year. However, that original pledge has been watered down to only cover existing tenancies when the courts are judged to be ready for it. Other elements of the bill, such as making blanket bans on benefits claimants unlawful, will be lost, together with a Decent Homes Standard for the private rented sector that has been promised, but has still not been published.

Leasehold and Freehold Reform Bill

The Leasehold and Freehold Reform Bill originally stretches back to January 2018, with a promise to ban the sale of new-build leasehold houses, and also includes promises from the 2019 manifesto to end the sale of new leasehold homes and to restrict ground rents on existing homes to a peppercorn. Provisions filling gaps in the Building Safety Act, including a replacement regime for dealing with insolvent developers and orphaned buildings, and a potential opportunity to strengthen protection for non-qualifying leaseholders is also part of the bill.

So near, yet so far for Renters (Reform) Bill

The Renters (Reform) Bill was very close to getting through all of the legislative hurdles and was set for the committee stage in the House of Lords. However, the bill could still be resurrected following the result of the General Election, as both main parties have committed their support to its main principles.

If you have any questions regarding the Renters (Reform) Bill or any other aspect of lettings and property management, please contact one of our specialist lettings team via our contact form or call 0161 511 5339.