The King’s Speech 2024 has introduced a wave of new legislation that is set to significantly impact the property landscape in the UK.
As expert estate agents and engaged observers of property law, we are keen to unravel these changes and their implications for landlords and leasehold owners.
Here’s a detailed look at the key reforms and what they mean for you.
1. Landlords: Enhanced Tenant Rights and New Obligations
* Abolishing no-fault evictions;
* Empowering tenants to challenge rent increases designed to force them out ‘by the back door’
* Stopping agents and landlords encouraging bidding wars
* Giving renters the right to request a pet but enabling landlords to request tenants take out pet damage insurance
* Applying a ‘decent homes standard’ to the PRS
* Applying Awaab’s law to the sector i.e. punishing agents or landlords who don’t fix damp and mould problems quickly
* Creating a digital national database of landlords and their properties.
Implications for Landlords:
These changes aim to strike a balance between tenant security and landlord interests. While they provide greater stability for tenants, landlords will need to adjust their strategies.
The rent control measures may require landlords to rethink their rental income forecasts. The mandatory longer tenancies will necessitate a focus on long-term tenant satisfaction and property maintenance.
Additionally, the stricter eviction regulations mean that landlords must be more diligent in documenting tenant issues and ensuring compliance with legal procedures.
* Review Rental Income Plans: Assess the impact of rent caps on your financial projections.
* Focus on Tenant Retention: Implement measures to ensure tenant satisfaction and minimise vacancies.
* Stay Compliant: Familiarise yourself with the new eviction process and ensure all legal requirements are met.
2. Leasehold Owners
Key Changes:
* Easier Freehold Acquisition: Making it easier and cheaper for leaseholders to extend their lease, buy their freehold and take over the management of the building.
* Ban new leasehold flats so that the common tenure in the UK becomes commonhold
Implications for Leasehold Owners:
These reforms are set to empower leasehold owners by making it easier and more affordable to gain full ownership of their properties. The enhanced transparency in service charges will protect leaseholders from excessive or unjustified costs, fostering a fairer relationship between leaseholders and freeholders.
