News Bulletin – Latest developments in the rented and leasehold sectors
In the King’s Speech on 17 July 2024, we learned more about the Government’s priorities for the next Parliamentary session in relation to the rented and leasehold sectors.
What can we expect?
Renters Rights Bill (to apply to England)
- Abolition of section 21 “no fault” evictions
- Tenants to be able to challenge excessive rent increases
- Tenants to have the right to request a pet and landlords cannot unreasonably refuse consent
- A “Decent Homes Standard” to apply to the private rented sector
- Extension of Awaab’s Law to the private rented sector
- Creation of a private rented sector ‘key information’ database
- New ombudsman to resolve landlord/tenant disputes in the private rented sector
- Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children
- Local councils to have new powers to investigate and fine unscrupulous landlords
Leasehold and Commonhold Reform Bill (to apply to England and Wales)
- The Law Commission’s outstanding recommendations on lease extensions, enfranchisement and right to manage to be enacted
- Reinvigorating Commonhold and restricting the sale of new leasehold flats – the Government will consult on the best way to achieve this
- Regulation of ground rents in existing leases
- Ending forfeiture for residential leaseholders
Leasehold and Freehold Reform Act 2024
- The measures in the Act that are not yet in force will be implemented.
Concluding Thoughts
The Labour Government, elected on 4 July 2024, has indicated its commitment to reforming the rented and leasehold sectors, but it remains to be seen how quickly this will be put into practice.
In the meantime, landlords will no doubt be reviewing their portfolios in light of the proposed reforms as the changes will significantly favour tenants/leaseholders.
Speak to an expert
For further advice and assistance, please contact our leasehold specialists, Gabrielle Roberts and Lynn James.
