Labour vows to end ‘bidding wars’ in the private rented sector

Labour will today announce a plan to end ‘bidding wars’ in the private rented sector as part of its package of reforms to help renters.

Angela Rayner, deputy leader and shadow housing secretary said the party wil bring in a policy to ensure “landlords can no longer pit hopeful renters against each other in a fight to see who can offer up a bigger sum”.

The party has not revealed how this would work, but Sky News is reporting that the party is looking at other countries where similar policies are successful.

This includes New Zealand where under rules introduced in 2021, rent levels must be included in adverts for the property and landlords cannot invite or encourage prospective tenants to pay any more than the stated amount.

Labour has previously tabled an amendment to the Renters Reform Bill  which stated that landlords must advertise a single rent figure in advance and be prevented from creating or encouraging bids that exceed that price.

The party is also planning to cap “massive upfront” rental payments.

Rayner will also today re-emphasise a series of its manifesto pledges, including an immediate ban on “no-fault” evictions and requiring PRS landlords to address hazards such as damp and mould.

In today’s announcement, Rayner, alongside shadow chancellor Rachel Reeves, will pledge that renters will be “better off” under Labour, detailing the housing reforms that Labour intends to make if elected on 4 July.

Labour will require all landlords to meet stringent energy efficiency standards by 2030, which it says will “slash” fuel poverty and cut energy bills, saving the average tenant £250 per year.

The party will also pledge to extend Awaab’s Law to private renters, to stamp out black mould, damp and cold and tackle respiratory and other health issues among renters.

>> See also: Mayor slams shelving of renters reform bill amid a 52% rise in no-fault evictions in the capital

>> See also: Report commissioned by Labour proposes introduction of private rent caps

Under Awaab’s Law proposals, social landlords would be required to investigate hazards within 14 days, start fixing them within a further seven days, and complete emergency repairs within 24 hours.

The consultation on Awaab’s Law concluded on 5 March and the government was reviewing responses to the consultation before the election was called.

Labour has also committed to building 1.5 million new homes over five years “to alleviate the crisis in private renting by boosting housing supply”.

The Conservative goverment pledged to end no-fault evictions in its 2019 manifesto. The renters reform bill, introduced to the House of Commons in May last year, aimed to end no-fault (Section 21) evictions and abolish fixed-term tenancies, in order to replace them with rolling contracts.

On 24 April, the bill passed its final reading in the Commons, but a series of amendments resulted in the indefinite delay of ending Section 21 evictions until a review of the courts system has been completed.

The renters reform bill had returned to the House of Lords on 15 May for a second reading. However, with the general election called on 22 May the government had to decide what parliamentary business to conclude before the dissolution of parliament on 30 May. The renters reform bill was one of the pieces of legislation that fell in the wash-up period. 

On Labour’s plans for rental reform, Rayner said: “Time and time again, the Tories have failed to stand up for renters. From endless delays to no-fault evictions, to failure to sort damp, cold and mouldy homes, the Conservatives are failing working people.

She continued: “Labour will call time on a decade of Tory vested interest and put renters first. An affordable, secure private rented sector is vital for economic growth, allowing young people to save for a mortgage with more money in their pockets to spend in the day-to-day economy. Our plans will support good landlords but we are calling time on unscrupulous landlords strangling growth. 

“The only real way to make renting more affordable is to build more homes, that’s why we have a plan to build 1.5 million homes over five years as an antidote to Britain’s failing private rented sector.

Rayner concluded: “Renters will be better off with Labour.”

Meanwhile this week more than 50 charities and housing organisations, including Shelter and Crisis, sent a letter to Rishi Sunak, Sir Keir Starmer, and Sir Ed Davey, urging them to prioritise ending homelessness during the next parliament and commit to building 90,000 social homes per year