King's Speech 2024: Renters Rights Bill and the Leasehold and Commonhold Reform Bill
While you may not have a chance to watch the entire address, I’d like to highlight a couple of key announcements from the 2024 King’s Speech at the Opening of Parliament.
The Renters Rights Bill and the Leasehold and Commonhold Reform Bill were a key focus of King Charles’ remarks. So, I’ll break down the details of these two bills in a quick overview of how they are set to change things in the UK.
What do these bills do?
In brief, The Renters Rights Bill will ban no-fault evictions and extend some building
safety rules for tenants. Additionally, The Leasehold and Commonhold Reform Bill will curb ground rent for existing leaseholders and ban the sale of new leaseholds and forfeitures over small unpaid debts. It will also make it easier for people who are leaseholders to buy their freeholds or take over building management.
Find more details in our deep dive here.
What does this mean for tenants?
The Renters Rights Bill will protect tenants from no-fault evictions and hand them powers to challenge rent increases. For example, there’s a provision in the bill to give tenants the right to request a pet, which landlords cannot unreasonably refuse. It seems a trivial thing, however for many people, it’s this type of restriction that demeans and humiliates them. It will also make it easier for people with pets to find properties to live in - something that has long since been a struggle.
What does this mean for leaseholders?
A ‘reinvigoration’ of commonhold via the Leasehold and Commonhold Reform Bill - the idea where joint owners of a block of flats can collectively manage their building - can only be a good thing for leaseholders who have faced inflated management costs in recent years. A ban on new leaseholds and increasing the ease at which owners can buy the freehold is a very positive thing for homeowners. Furthermore, additional detail was provided on Labour’s plan to build more homes. Ministers are hopeful that by giving more planning powers to England’s Metro Mayors, more home will be developed. They also believe planning reforms will encourage developers to ‘get building’. Additional new homes may ease housing market pressures and take the strain off buyers and sellers alike.
Overall, the Renters Rights Bill and the Leasehold and Commonhold Reform Bill are good news for tenants and leaseholders alike. If you're looking for a new flat, thinking of getting a pet, worried about eviction or considering purchasing a leasehold; Wilkinson Woodward can support you. It’s possible either the Renters Rights Bill or the Leasehold and Commonhold Reform Bill benefit your circumstances and we’re happy to provide guidance and legal advice on both these pieces of legislation.