General Election Date Announced - How will this impact Rental Reform?

General Election Date Announced - How will this impact Rental Reform?

The Prime Minister has announced that a General Election will be held on Thursday 4th July and that Parliament will be dissolved on Thursday 30th May 2024.

All parties will be keen to win the votes of landlords and tenants, and so we hope to see housing as a significant part of all political parties’ campaigns. Attempting to solve the issues facing the rental market should form a large part of their manifestos and, given the failure to keep pace with rental demand in recent years, landlords must be encouraged to invest in the PRS.

House Prices
Historically, house prices perform better in the last year of an electoral term compared to the first year after an election, so there could be some slowing of the sales market. On the other hand, the certainty of an election result and a potential interest rate drop (as inflation nears the Bank of England’s target) might be welcome news for buyers and sellers.

Rental Reform
First announced in 2019, we have been awaiting the final detail on the Bill ever since. The recent pace of its progress through the House of Commons and House of Lords meant it had been broadly anticipated to become law in Spring 2025, and many in the industry were looking forward to clarity on the Bill.

Given that the election is only six weeks away, there simply may not be time for it to finish its stages before 4th July. Any Bills that have not received Royal Assent by 30th May will not enter into law and cannot be continued into the next Parliament (even if the Conservatives were to return to government).

No announcement has been made yet, but more may be known in the coming days.

Published May 2024