The King’s Speech 2024

The recent King’s Speech included two particular Bills aimed at the property market

Amongst the 40 or so items in Labour’s manifesto were two key Bills that will have an impact on our clients and their tenants.

1. RENTER’S RIGHTS BILL

Finding a balance between unfair evictions and unruly tenants, Labour have proceeded with their plans to address what they deem to be the unfair treatment of tenants by what is (fortunately) considered a minority of unscrupulous landlords, as follow:

Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession…”

The aim of the bill is to level the playing field between landlord and tenant. It also takes into account the landlord’s point of view by addressing clear possession grounds so that owners can reclaim their properties when the need to. Tenants who continuously default on their rent payments, for example, can quickly lead a property owner into deep water.

Decent Homes Standard

This aims to address the standards of private rental homes following the landmark case of the death of a toddler through exposure to toxic mould. Landlords must rapidly address hazards affecting health and safety without discriminating against those with children or on benefits. This action is to be enforced by local councils who have new legally binding powers to pursue and fine offending landlords.

Pets allowed

The new bill also provides renters with the right to request keeping a pet – landlords must reasonably consider granting approval, though insurance may be required to cover possible damage.

Given the number of renters in the UK, currently around 11 million people, the reforms overall are important to permit a decent quality of life for tenants. A safe, healthy and secure space in which to live and the comfort of a pet companion are surely not too much to ask for the many who cannot afford to own their own home.

Meanwhile, for some landlords, the pressure of maintaining their rental properties has increased significantly in the last few years thanks to factors such as Brexit, cost of living rises and fuel prices alongside ever-changing legislation. The new bill can seem like an unwelcome and somewhat unfair addition to their already weighty responsibilities.

We’re hoping it will ultimately bring about a workable and sustainable framework for all.

2. PLANNING & INFRASTRUCTURE BILL

One of the biggest housing related issues facing the UK currently is the lack of affordable homes available for young people and those on a lower wage. The opportunity to get on the housing ladder has grown ever harder with the average house now costing many times the annual wage. Help-to-buy schemes and housing associations have never been busier but overall are indicative of a problem that has been evolving for some years now.

Labour plans to “get Britain building”

The proposed planning reforms will cut through red tape, short circuit planning permission and open up new possibilities for much needed homes at a pace. Their ambition is to deliver 1.5 million homes in England over the next 5 years.

The impact of delivering much needed new stock to the housing market will be a steadying of house prices. The rate of increase in cost has been driven by scarcity but is fundamentally unhelpful and instead makes home ownership expensive for all. A new supply of property is predicted to ease tension in the rental market. There will always be those for whom renting is preferable, and the cost of ownership for landlords should also become more economically viable over time.

THE FIRST STEP TO CHANGE IS MORE OF THE SAME

…or so they say. The next step is generally more radical and inevitably causes resistance. But change is now needed for things to start moving effectively again. So, despite the concerns and the possible downsides, it’s time to embrace the change.

IF YOU’D LIKE HELP WITH CHANGE MANAGEMENT IN YOUR PROPERTY PORTFOLIO, SPEAK TO OUR KNOWLEDGEABLE TEAM, CALL 020 3637 7968 OR EMAIL INFO@MIHPROPERTY.CO.UK

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