One year on: How have Labour changed the lettings market?

After 14 years of Conservative leadership, Labour took the reins in July 2024, pledging to focus heavily on increasing the supply of affordable new homes, strengthening tenants’ rights, and reinforcing their commitment to achieving Net Zero. 

When Parliament was dissolved ahead of the election, two major pieces of housing legislation were still in progress and required further work: the Renters (Reform) Bill and the Leasehold and Freehold Reform Act. At the time, Labour set out the following intentions: 

• Deliver “a blitz of planning reform to quickly boost housebuilding to buy and rent and deliver the biggest boost to affordable housing in a generation.” 

• Scrap the Renters (Reform) Bill and introduce their own version – with Angela Rayner stating that Labour would “ban ‘no-fault’ evictions with no caveats on its first day in power.” 

• Abolish leasehold and replace it with commonhold – although not within the first 100 days. 

• Maintain the Conservative housebuilding target of 300,000 new homes a year, committing to 1.5 million over their first five years. 

• Create a new generation of ‘new towns,’ with 40% of the homes designated as affordable housing. 

• Launch a Warm Homes Plan aimed at reducing household bills by up to £500 a year, while giving local councils the funding and authority to upgrade homes. 

Now, one year on, how much progress has been made? 

On 11th March, Labour’s Planning and Infrastructure Bill was introduced in Parliament, and it has now reached the Committee Stage in the House of Lords.  

This is one area of housing policy where Labour has acted quickly, as promised. The Renters’ Rights Bill (RRB) was introduced to Parliament on 11 September 2024 and had its first reading that same day. While many of its provisions mirror those in the previous Conservative Bill, the RRB goes further in strengthening tenants’ rights. It is now at the 3rd Reading stage in the House of Lords, with only two steps remaining – final consideration in the Commons and then Royal Assent. 

While we wait for the Bill to become law, there are three important points to highlight: 

• Section 21 remains in place for now. Despite Labour’s pledge to abolish it as soon as possible, this has yet to happen. 

• Two notable landlord-related amendments have been introduced during the Bill’s progress: 

  • Landlords will no longer be able to require tenants with pets to take out pet damage insurance or contribute towards a landlord’s own policy. In the Bill’s original draft, this was set to become a permitted payment under the Tenant Fees Act. 

  • If tenants unsuccessfully challenge a rent increase, the Bill introduces a power for the secretary of state to potentially backdate rent increases at some point in the future. Earlier versions of the Bill had removed this power, so its return is positive news for landlords. 

• The Decent Homes Standard is being extended to the PRS. A review of the current standard has been completed, and a consultation is now underway on the Government’s proposed changes. 

At the end of January, the first measure from the Leasehold and Freehold Reform Act – passed under the Conservative Government in May last year – came into effect. This was Section 27, which removes the two-year ownership rule. Leaseholders can now extend their lease or purchase the freehold immediately after buying a leasehold property, without having to wait two years. 

The second change followed on 3 March, giving more flat leaseholders the right to manage their property themselves. To do this, leaseholders simply set up their own management company and serve formal notice on the landlord or freeholder – no permission required. After a set handover period, management responsibility transfers, and leaseholders are no longer obliged to cover the freeholder’s legal fees. 

In addition, the Government has published its White Paper on a new Commonhold model, with a Bill expected to be introduced later in the year. 

According to analysis by BBC Verify, every region of England saw a year-on-year drop in new homes during Labour’s first six months in power. Around 107,000 new homes were recorded in the second half of 2024 – a 10% decrease compared with the same period in 2023. With an annual target of 300,000, Labour is currently falling well short. 

However, there has been a positive development. The Government has announced a new £39bn Social and Affordable Homes Programme as part of its wider Plan for Change. Of the homes delivered through the scheme, 60% will be for social rent, with the remaining 40% allocated to other tenures such as shared ownership and affordable rent. This represents the largest boost to grant funding in a generation. 

Overall, while Labour has not been able to enact its proposals as quickly as promised in its manifesto and early days of government, reasonable progress is being made. The Renters’ Rights Bill is now in its final stages and is expected to pass into law in the second half of 2025, although its various measures will take time to be implemented. And while new housebuilding numbers are currently lagging, consultations and significant funding commitments are in place to help drive an increase in the coming years. 

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