What to expect from the private rented sector in 2023 (Part 2: Legislation)
In the second of a two-part blog series, our Lettings Manager James Gwynne shares his current assessment of the private rented sector (PRS) and what to expect in 2023 in terms of legislation.
Since the first Johnson administration in 2019, there have been many policy announcements related to the private rented sector (PRS). However, in the main, little to none of it has yet come to fruition. This is mainly due to the constant political changes and consultation periods in play.
However, 2023 could see key legislative agenda return to government debate with potential impact across the sector. In this blog, I’ll be looking at what’s on the horizon for the PRS in 2023 in terms of legislation.
(For an idea of what to expect from the PRS market in 2023, check out part 1 of this series.)
PRS legislation in 2023
This year, we’re expecting to see two key discussion points, which have largely been on the sidelines for the last 8-9 months, come back to the fore:
- Changes to minimum energy efficiency standards
Currently, to let your property, the minimum standard of energy efficiency is Grade E. By 2025, this is likely to increase to Grade C.
- Renters’ reform white paper
This covers wide-sweeping reforms to the PRS, but to name a few key points, it covers changes to how tenancy agreements are drafted, notices served and pet allowances. A timescale on this bill is currently unknown.
Ultimately, both of these measures may help improve the sector and whilst we’re sure they won’t be without cost to landlords, via ARLA Propertymark (our regulators) we’re working in the industry to ensure the best outcome for landlords.
Given the sensitive financial situation in the country, it’s quite natural to expect that the government will take a quiet and cautious stance on policy for at least the first half of 2023.
We can anticipate legislative areas to be discussed, consulted on and planned, however the government will be aware of the fine balance for tenants at the moment and will be keen, at least until they can push their wider house-building plans forward, to keep landlords in the sector for now.