Labour review calls for National Landlords Register, rent ‘stabilisation’ and tenant security

A report commissioned by Labour has called for a major overhaul of the private rented sector (PRS), including the creation of a National Landlord Register and measures to prevent rent rises.

There are also calls for Section 21 ‘no-fault’ evictions to be abolished and a bid to discourage PRS landlords from leaving for the short-let and temporary accommodation sectors.

And there needs to be more social housing built, the report says, with an acknowledgement that planning policies will need to be reformed.

The report, by Hammersmith and Fulham council leader, Stephen Cowan, is ‘independent’ and its views ‘don’t reflect the Labour Party’.

However, it is being seen as influencing Labour’s housing policy ahead of the next election.

Britain’s broken housing sector

Mr Cowan said: “Britain’s housing sector is broken. For many people, the opportunity to live in a secure, affordable, accessible and good home is out of reach.

“That is set to remain the situation for generations to come unless the system is changed significantly. And that is something Labour has determined to do.”

He added: “Fixing the supply of genuinely affordable homes to buy or rent is an essential step to fixing every part of the housing sector.”

‘Holistic approach’ to fix the housing market’

The report outlines five key areas for reform, emphasising the need for a ‘holistic approach’ to fix the housing market.

• Increase supply of social housing and genuinely affordable homes: The review highlights the importance of increasing social housing stock and boosting the supply of genuinely affordable homes to buy and rent. It recognises this will require significant reform to planning and land development policies
• National Landlord Register to enforce standards: The report proposes a mandatory National Landlord Register, requiring landlords to register properties and demonstrate compliance with an annually updated ‘PRS Decent Homes Standard’. This would include evidence of Gas Safety certificates, electrical tests and regular surveyor reports
• End Section 21 ‘no-fault’ evictions to provide security for tenants: The report calls for the abolition of Section 21 ‘no-fault’ evictions to provide tenants with greater security of tenure
• Rent stabilisation, not rent controls: The review argues against ‘first generation’ rent controls fearing they would have a detrimental effect on the PRS. Instead, it proposes ‘third generation’ rent stabilisation measures, limiting rent increases within tenancies to either local wage growth or inflation, whichever is lower. It also recommends a model with annual rent increases only, four-month notice periods for rent rises and scrapping rent review clauses
• Discourage landlords from moving to other sectors: The report suggests measures to discourage PRS landlords from moving to short-term holiday lets or temporary accommodation sectors, aiming to preserve long-term rental stock.

Landlords should pay to use the National Landlords Register

The report also makes clear that landlords should pay a fee to use the National Landlords Register – and an independent body should carry compliance checks.

Landlords may also worry about the security of tenure proposal with only periodic tenancies being used – and want to sell a property ‘should not be a ground for ending the tenancy’.

The only ground would be for a landlord to move back into their property as their main residence.

A default by the tenant would also be grounds for possession but lowering the ground for antisocial behaviour should be ‘discretionary’.

The report also wants tenancy agreements to ‘take the form set out in the Renting Homes (Wales) Act 2016’.

Rent rises being restricted under Labour

Landlords could also see rent rises being restricted under Labour to ‘within tenancies but not between them’ to prevent a new tenancy starting at ‘market rates’. Rent stabilisation would also see:

• Annual increases only
• Four months’ notice of increase
• No rent review clauses
• Rent increases limited to local wage growth or CPI, whichever is the lower.
• There should be one system for England and Wales.