Time is running out for the government to enact the Renters Reform Bill, with mounting concerns that the looming general election could hinder the introduction of legislation.
According to Knight Frank’s January 2024 prime London lettings market analysis, the impending general election could mean the government may not be able to bring in the new legislation in time, creating even more uncertainty for landlords and tenants.
“What might an incoming Labour government do if time runs out for the Tories?” questioned the report.
The Renters Reform Bill was introduced to parliament on 17th May 2023 to “bring in a better deal for renters” by abolishing ‘no fault’ evictions and reforming landlord possession grounds.
If the opposition decides to double down on the current proposals, it is suggested that this is unlikely to reverse the flow of departing landlords or reduce the upwards pressure on rents.
Knight Frank’s findings highlighted a 7.2% annual growth in rents in prime central London in January, much steeper than the -0.8% average in the five years before the pandemic, but less than the 18.3% reported in 2023.
In prime outer London, rents grew by 6.2% over the past year, much less than the 16.4% recorded last January, but still a hike on the pre-Covid average of -1.6%.
According to Rightmove’s property expert Tim Bannister, “we can’t keep seeing double digit rent rises every year as tenant affordability simply cannot keep up.”
Rightmove predicts that average rents will rise by 5% outside of London and 3% in London this year.
