There was much in the King's Speech for the property sector although some of it will already be familiar, including Martyn's Law and 'no fault evictions'.
The commitment to streamlining delivery of critical infrastructure is welcome. The renewed commitment to reinvigorate commonhold as an alternative to leasehold tenure will require those implementing and advising on such schemes to dust off their knowledge.
It was made clear that proposals such as restricting the sale of leasehold flats, how to end "fleecehold private estates and unfair costs" and implementing the Leasehold and Freehold Reform Act 2024 would require further consultation.
Planning and Infrastructure Bill
This Bill seeks to introduce measures to streamline the delivery of critical infrastructure. The briefing note published shortly after the Kings Speech focuses on energy infrastructure which ties in with the new government's ambition to create "Great British Energy", a publicly owned energy company.
There will also be changes made to the compulsory purchase regime which ensure "fair but not excessive" compensation and this suggests that compensation may be lowered in cases where land is required for "important … infrastructure" such as major energy projects or affordable housing.
On the local level the Bill will seek to "modernise planning committees" and "increase local planning authorities capacity" although few details have yet been provided.
The Terrorism (Protection of Premises) Bill
As anticipated, the Terrorism (Protection of Premises) Bill (Martyn's Law) has remained part of the new government's legislative programme. This will continue to be of significant interest to those that control real estate to which members of the public have access who will need to ensure compliance once it becomes law to ensure the public are adequately protected against terrorism.
Renters' Rights Bill
The Renters’ Rights Bill looks at strengthening rights of residential tenants and reforming the grounds landlords can use to take possession.
It will include abolishing Section 21 ‘no fault evictions’, reforming possession grounds so these are "clear and expanded", enabling landlords to recover property when they need to and allow tenants the ability to challenge rent increases and end rental bidding wars.
Tenants will be given a right to request to keep pets that landlords cannot unreasonably refuse (backed by insurance to protect landlords against damage). A new "Decent Homes Standard" will provide safe homes that are secure and hazard free. "Awaabs Law" will be brought in to ensure that homes are made safe according to a clear legal framework.
A digital private sector database will be created to provide information for those in the private rented sector (landlord, tenant and councils). It seems the intention is to create a one stop shop for key resources and information for those in the sector.
A new ombudsman's service will, hopefully, reduce the need for parties to litigate and so reduce costs and while providing a binding, impartial means of resolving disputes.
It will be illegal for landlords to discriminate against tenants that have children or receive benefits and local councils will have strengthened investigatory and enforcement powers.
Draft Leasehold and Commonhold Reform Bill
This bill promotes commonhold as a replacement tenure to leasehold. It will do this in part by modernising the existing legal framework to bring the "feudal leasehold system to an end".
The sale of new flats will be restricted and the government has said that it will consult on how to do this.
The government will also end forfeiture in the context of home ownership to avoid leaseholders risking their homes for disproportionately small debts.
It anticipates enacting the remaining recommendations of the Law Commission on lease extensions, the right to buy and the right to manage.
Existing ground rents will be regulated as will "‘fleecehold’ private estates and unfair costs".
The government also stated its commitment to bring into force the new homeowner protections in the Leasehold and Freehold Reform Act 2024.
English Devolution Bill
The English Devolution Bill looks to provide local communities with a new 'right to buy for community assets'. It is intended this will include empty shops, pubs and community spaces the hope being that it will breathe life into high streets and reduce voids. Whether this is in addition, or instead of, existing legislation protecting assets of community value will no doubt be in the detail once the Bill is published.
