The King’s Speech, delivered on 17 July 2024, has set the stage for significant changes in the UK property market, with promises that his labour government, led by Keir Starmer, will “get Britain building”. In this landmark address, King Charles introduced 40 bills to the new session of parliament, including several that will directly impact property owners, tenants, developers, and local authorities across the nation.
As property conveyancing solicitors, we at Triangle Legal Services understand the importance of staying informed about these legislative changes. In this blog post, we’ll break down the most important bills affecting the UK property market and explain what they could mean for you.
How will this affect the UK property market?
Although we only know the outline proposals and will have to wait for the details, the main bills affecting the UK property market are:
- The Renters Rights Bill
- The Green Homes Grant Bill
- The Property Tax Reform Bill
- The Draft Leasehold and Commonhold Reform Bill
- The Planning and Reform Bill
- The English Devolution Bill
Each of these proposed bills has the potential to reshape various aspects of the property landscape, from rental agreements to the planning system. We’ll examine each bill to understand what it aims to do and how it might affect landlords, tenants, and other people involved in the property market.
The Proposed Bills and Anticipated Outcomes
Renters’ Rights Bill
The UK government has stated that the Renters Rights Bill is intended to increase renters’ rights while maintaining a fair and equitable private rental sector.
Main aspects of the bill include:
- Creation of a Renters’ Ombudsman: This new role will enforce renters’ rights through binding and impartial arbitration. The aim is to reduce the need for court proceedings, making dispute resolution faster and more accessible.
- Scrapping of Section 21 no-fault evictions: This headline measure will provide tenants with greater security, protecting them from unwarranted evictions.
- Regulation of rent increases: The bill proposes measures to prevent excessive rent hikes, promoting stability for tenants.
Draft Leasehold and Commonhold Reform Bill
The Draft Leasehold and Commonhold Reform Bill represents a significant step towards overhauling the current leasehold system in the UK. This bill aims to implement the remaining recommendations of the Law Commission that were not adopted by the previous government in the Freehold Reform Act.
Key aspects of the bill include:
- Ban on extortionate ground rents: This measure aims to protect leaseholders from unreasonable financial burdens.
- Enhanced rights for lease extensions: The bill proposes to make it easier and potentially less costly for leaseholders to extend their leases.
- Improved right to buy freehold (Leasehold enfranchisement): This will give leaseholders greater opportunities to purchase the freehold of their properties.
- Promotion of commonhold: The bill is expected to encourage a transition towards the commonhold system, which is seen as a fairer alternative to leasehold.
Planning and Infrastructure Bill
This is the main measure the government hopes will stimulate growth by streamlining the planning process so ensure more houses are built.
Key aspects of the bill include:
- Modernisation of planning processes: The bill proposes to update and simplify current planning procedures, making them more efficient and responsive to housing needs.
- Faster decision-making: By streamlining processes, the bill aims to reduce delays in planning approvals.
- Prioritisation of brownfield sites: The legislation is expected to encourage the development of previously used land, helping to protect greenfield areas.
- Enhanced local planning capabilities: Local authorities may be given more tools and resources to make informed planning decisions.
English Devolution Bill
The English Devolution Bill will transfer more powers to local authorities and metropolitan Mayors, who have greater local knowledge, including more powers relating to housing and local area planning. There will also be
provisions for the acquisition of community assets by local councils so as to revamp local high streets.
Key aspects of the bill include:
- Transfer of powers: Local authorities and metropolitan mayors will gain more control over various aspects of governance, including housing and local area planning.
- Community asset acquisition: Provisions for local councils to acquire community assets, particularly aimed at revitalising local high streets.
- Enhanced local decision-making: Greater autonomy for local areas to make decisions that suit their specific needs and circumstances.
What does the King’s Speech 2024 mean for me?
The impact of the bills introduced in the King’s Speech 2024 will have varying effects, depending on your “skin in the game”. Of course, all of this is just speculation at the moment, but with the government’s huge majority in Parliament, it is likely that most of these bills will be enacted in their entirety.
We’ll talk you through our take on it:
First-time buyers and existing homeowners
- Positives: Affordable housing, tax reforms, green grants, greater rights to extend leases and buy freeholds, less anti-social behavior.
- Challenges: Navigating new regulations.
Renters and Tenants
- Positive: Rent control, enhanced rights, better security of tenure.
- Challenges: Potential reduced rental property availability.
Landlords
- Positive: Grants for improvements, the removal of unscrupulous landlords and a better Private Rental Sector.
- Challenges: Rent control, regulatory compliance.
Developers
- Positive: Incentives for affordable, green housing.
- Challenges: Compliance with new quotas and standards.
Local Governments
- Positive: More powers, better tax alignment.
- Challenges: Increased responsibilities.
Of course, all of this is just speculation at the moment, but with the government’s huge majority in Parliament, it is likely that most of these bills will be enacted in their entirety.
Let Us Help You Make Informed Decisions as the UK Property Market Evolves
While these changes promise to create a fairer, more efficient property market, they also bring new complexities. The full impact of these reforms will only become clear as the bills are debated, potentially amended, and eventually enacted into law. Our team of experienced property conveyancing solicitors stay up-to-date with the latest legal developments, ensuring you receive current, relevant advice.
At Triangle Legal Services, we understand that these changes will affect each stakeholder differently. Our team of expert property solicitors is committed to providing tailored advice to help you navigate these new regulations and make informed decisions. Whether you’re a first-time homebuyer, a landlord adapting to new rules, or a developer planning your next project, contact us for a personalised conveyancing quote, and we’ll guide you through the evolving property landscape.