On 17th July 2024, King Charles III kicked off the new Parliament with his King’s Speech, sharing the government’s plans and potential changes for the next five years. He outlined the draft laws they want to introduce soon and talked about possible updates or eliminations of existing rules.
So what did the King’s speech cover?
King Charles highlighted the government’s focus on security, fairness, and opportunity for everyone, with stability at the heart of their plans. He mentioned that any tax and spending changes will be reviewed by the Office of Budget Responsibility (OBR). The main goal is to boost the economy by partnering with businesses and workers. Tackling the rising cost of living is also a priority, with an emphasis on creating wealth for all.
The speech included plans to drive local economic growth and support the construction sector. This includes planning reforms, developing top-notch infrastructure, and strengthening the housing market. The government aims for sustainable growth by investing in industry, skills, and new technologies.
What changes can we expect in the property market?
Several potential changes in the property market were discussed. Here’s a rundown of the main points:
- Reforming Leasehold Law
- Leaseholders, who own the lease but not the land, often face high costs and need permission from freeholders or managing agents for changes. With over five million leaseholders in the UK, the government wants to reform leasehold laws to make things fairer for everyone involved.
- Building Homes
- The government has big plans for renters and leaseholders, including a promise to build 1.5 million homes, with a focus on social and affordable housing. Experts are curious about how they’ll achieve this.
- Abolition of No-fault Evictions
- Previously, landlords could evict tenants without a reason under Section 21 of the Housing Act of 1998. This has now been scrapped, meaning landlords can’t evict tenants without a valid reason. Landlords worry this might lead to higher rents, and in turn, an increase in rent arrears.
- Awaab’s Law
- Named after a young boy who died from respiratory issues caused by mould in his home, this law aims to prevent similar incidents. The government plans to extend social housing safety rules to the private rental sector.
Conclusion
King Charles outlined the government’s upcoming plans, focusing on economic growth, stability, and tackling living costs. Key changes in the property market include ending no-fault evictions, extending safety rules to private housing, and ambitious plans to build 1.5 million homes, including affordable housing. The government also aims to improve leasehold laws for a fairer system. These changes reflect a commitment to security, fairness, and opportunity for all.
