Case Study: UK Government Housing Measures and Awaab’s Law – Impact on Landlords and Tenants

In September 2024, during the Labour Party Conference, the UK government announced pivotal housing reforms aimed at addressing the inequalities and challenges faced by tenants in both the social and private rented sectors. One of the most significant legislative changes is the introduction of Awaab’s Law, which aims to ensure landlords respond swiftly to health hazards such as damp and mould. This case study will explore these developments and their implications for landlords, tenants, and letting agents.

Awaab’s Law

Awaab’s Law was first proposed in response to the tragic death of two-year-old Awaab Ishak in 2020, caused by prolonged exposure to mould in a social housing property. His death highlighted severe deficiencies in how some landlords address health hazards. The new legislation, due in Autumn 2024, extends beyond the social rented sector to cover private landlords. Under Awaab’s Law, landlords will be legally required to remedy health hazards within a set timeframe once reported by tenants, ensuring homes meet minimum health standards.

Key Measures Introduced at the 2024 Labour Conference

In addition to Awaab’s Law, several other reforms aimed at transforming the rental sector were announced, most notably through the Renters’ Rights Bill. These changes are expected to have far-reaching impacts on both tenants and landlords:

1. Abolition of Section 21 ‘No-Fault’ Evictions: One of the central components of the reform is the elimination of Section 21 evictions, which allowed landlords to evict tenants without providing a reason. This change is intended to provide tenants with greater security, allowing them to build stable lives without the fear of arbitrary eviction. Landlords, however, will still have the right to repossess their property under clear, justified grounds such as the need to sell or occupy the property themselves.

2. Decent Homes Standard: The introduction of a Decent Homes Standard to the private rented sector means that landlords will need to ensure that properties are free from severe hazards, including damp and structural issues. This aligns with the objectives of Awaab’s Law to raise the quality of housing across the rental market, benefiting millions of tenants currently living in unsafe conditions.

3. Rent Controls and Fair Rent Practices: To curb spiralling rent prices, the new law will limit rent increases to once per year, aligned with market rates. It will also ban landlords and agents from accepting bids above the advertised rental price, aiming to stop rent bidding wars that disproportionately affect tenants in high-demand areas.

4. Protections Against Discrimination: The new legislation will make it illegal for landlords to discriminate against tenants based on receiving benefits or having children, thus expanding housing opportunities for more vulnerable groups. The aim is to create a fairer, more inclusive rental market.

Implications for Landlords and Letting Agents

Landlords will need to adapt to these reforms quickly, particularly regarding Awaab’s Law. The new legal responsibilities mean landlords must act promptly to address health hazards, or face fines and legal actions. While these changes are designed to protect tenants, some landlords may face increased financial and operational pressures, particularly in upgrading older properties to meet the Decent Homes Standard.

Furthermore, the abolition of Section 21 evictions and stricter controls over rent increases could deter some landlords from staying in the rental market. The National Residential Landlords Association (NRLA) has already warned that the new regulations could push some landlords to convert properties into short-term lets, such as those offered through platforms like Airbnb, which could further exacerbate the housing crisis ​(The Independent)​ (Leaders).

Conclusion

The 2024 Labour Conference marked a turning point in UK housing policy, with the introduction of comprehensive reforms aimed at creating a more balanced and fair rental market. The enactment of Awaab’s Law and the broader Renters’ Rights Bill will transform the responsibilities of landlords, ensuring that all tenants live in safe, secure, and affordable homes. While the reforms provide much-needed protections for tenants, landlords and letting agents must navigate these changes carefully to remain compliant and continue providing high-quality housing.

This case study serves as a guide for landlords, tenants, and letting agents to understand the implications of these legislative changes. At Peaksons Properties Ltd, we are committed to helping our clients navigate this evolving landscape, ensuring that properties under our management meet the highest standards of safety and compliance.

For more information or assistance in understanding how these reforms affect your rental property, contact us at Peaksons Properties Ltd.

Written By.

Harsh Mayavanshi
Business Development
Email: harsh@peaksons.co.uk
Peaksons Properties Limited
________________________________________