Labour Renters' Rights Bill Could Force Landlords to Forgo Rent for Year

The Renters' Rights Bill, currently progressing under the Labour Party government, introduces sweeping changes aimed at protecting tenants but poses significant challenges for landlords. Key provisions include banning landlords from evicting tenants to sell properties during a 12-month 'protected interval' at the start of tenancies and preventing re-letting of properties for up to 12 months if a sale falls through, a marked increase from previous rules. This could cause landlords to lose rental income for an extended period, especially given that about a third of property sales fail to complete due to buyer issues. The Bill also abolishes fixed-term assured shorthold tenancies and Section 21 no-fault evictions, replacing them with open-ended tenancies and stricter grounds for repossession. Industry leaders like Nathan Emerson, CEO of Propertymark, warn these measures may exacerbate property vacancies amid an already strained housing supply, while Chris Norris of the National Residential Landlords Association underscores the risk of long-term empty homes worsening the housing crisis. The British Property Federation, NRLA, and other bodies have formally expressed concerns to the government about the potential unintended consequences of these reforms.