The King’s Speech 2024 has unveiled several significant proposed bills, set to impact landlords, tenants and the wider housing sector. Key among these are the Renters’ Rights Bill, the English Devolution Bill, a draft of the Leasehold and Commonhold Reform Bill, and the Planning and Infrastructure Bill.
Each of these bills includes various provisions aimed at improving the rental market, property ownership, and urban planning. Here’s a breakdown of the main points from these bills, along with their implications for landlords and tenants.
The Renters’ Rights Bill – King’s Speech 2024
Summary
The Renters’ Rights Bill is effectively Labour’s version of the now-shelved Renters (Reform) Bill. It aims to overhaul the private rental sector and provide stronger protections for tenants.
Key inclusions
- Abolition of Section 21: Landlords must provide clear and expanded possession grounds to reclaim properties.
- Enhanced tenant rights: Tenants can challenge rent increases and the practice of rental bidding wars is prohibited.
- Pets in lets: Landlords must reasonably consider tenant requests to keep pets and may request insurance for potential damage.
- Decent Homes Standard: Implementation of a standard for quality living conditions in the private rental sector.
- ‘Awaab’s Law’: Legal expectations and timeframes for landlords to address property issues.
- Digital private rented sector database: Centralised information resource for landlords, tenants, and councils.
- New ombudsman service: Quicker, cheaper dispute resolution for landlords and tenants.
- Anti-discrimination measures: Prohibition of discrimination against tenants receiving benefits or with children.
- Strengthened local council enforcement: Enhanced powers to identify and penalise rogue landlords.
What this means for landlords
How will the abolition of Section 21 affect my ability to reclaim my property? Landlords will need to provide valid reasons under expanded possession grounds, making it essential to document and justify the need to reclaim properties.
What do I need to know about tenant rights to challenge rent increases? Rent increases must be justified, and tenants can dispute unjustified hikes, reducing the likelihood of rental bidding wars inflating prices.
What this means for tenants
Can I have a pet in my rental property? Yes. Landlords must reasonably consider tenant requests for pets, but they may require – and specify the need for – pet insurance to cover potential damages.
How will ‘Awaab’s Law’ impact the quality of my rental property? Landlords will be legally obligated to address reported issues within specific timeframes, ensuring safer and better-maintained living conditions.
English Devolution Bill – King’s Speech 2024
Summary
The English Devolution Bill aims to provide more local control over various regional matters, including housing and urban planning.
Key Inclusions
- Increased local authority powers: Greater control over housing policies and planning decisions.
- Regional funding allocations: More financial resources for local housing initiatives and infrastructure projects.
- Customisable local policies: Regions can tailor policies to better fit their specific housing needs and challenges.
What this means for landlords
How will increased local authority powers affect my rental properties? Local authorities may implement new regulations and policies affecting rental properties, requiring landlords to stay updated on regional changes.
Will regional funding allocations impact property values? Enhanced funding for local housing initiatives can improve infrastructure and amenities, potentially increasing property values in the region.
What this means for tenants
Will this bill improve the availability of affordable housing in my area? Increased local control and funding can lead to more targeted and effective affordable housing initiatives, improving access for tenants.
How might customisable local policies benefit me as a tenant? Policies tailored to regional needs can address specific housing challenges, leading to better living conditions and more responsive local governance.
Leasehold and Commonhold Reform Bill – King’s Speech 2024
Summary
This draft of the Leasehold and Commonhold Reform Bill addresses the long-standing issues within leasehold and commonhold property ownership, aiming to provide fairer terms and more transparency for property owners.
Key Inclusions
- Leasehold reforms: Simplification and reduction of ground rents.
- Commonhold improvements: Enhanced frameworks for commonhold ownership, making it a more viable alternative to leasehold.
- Transparency measures: Clearer information and rights for leaseholders.
What this means for landlords
How will leasehold reforms affect my property investments? Reduced ground rents may impact income from leasehold properties. However, process simplification could make investment properties more attractive to buyers.
What do commonhold improvements mean for me? Commonhold offers a more straightforward ownership model, potentially reducing management complexities and enhancing property value.
What this means for tenants
Will these reforms make it easier to purchase a property? Yes, clearer information and fairer terms can simplify the process of buying a leasehold or commonhold property, making homeownership more accessible.
How will transparency measures benefit me? Greater transparency ensures you understand your rights and obligations as a leaseholder, leading to more informed decisions and better protection.
Planning and Infrastructure Bill – King’s Speech 2024
Summary
The Planning and Infrastructure Bill aims to modernise the planning system, facilitating more efficient and effective development processes.
Key Inclusions
- Streamlined planning processes: Faster approval times for new developments.
- Infrastructure improvements: Enhanced investment in public infrastructure to support housing growth.
- Sustainable development focus: Emphasis on environmentally friendly and sustainable building practices.
What this means for landlords
How will streamlined planning processes affect my property development plans? Faster approvals can accelerate development timelines, allowing you to bring rental properties to market more quickly.
What impact will infrastructure improvements have on my investments? Better infrastructure can increase property desirability and value, attracting more tenants and potentially boosting rental income.
What this means for tenants
Will this bill lead to more housing options in my area? Streamlined planning and increased infrastructure investment are likely to result in more housing developments, expanding rental options.
How will the focus on sustainable development impact my living environment? Sustainable building practices can lead to healthier, more energy-efficient homes, reducing living costs and environmental impact.
How significant are the King’s Speech 2024 announcements?
The 2024 King’s Speech has introduced a range of significant bills aimed at transforming the housing sector. The Renters’ Rights Bill, English Devolution Bill, draft Leasehold and Commonhold Reform Bill, and Planning and Infrastructure Bill.
Each bill proposes crucial changes, with varying impacts on landlords and tenants. Understanding these changes and preparing for their implications will be essential for navigating the evolving landscape of the private rental market and property ownership in England.
What do you think of the announcements made in the King’s Speech 2024? Do these proposed bills help or hinder landlords? Do the measures go far enough? Share your thoughts in the comments below.
