Article written by Melissa Arslan
Following the King’s Speech on 17 July 2024, we await with bated breath the implementation of the Leasehold and Freehold Reform Act 2024, and other changes which are proposed in the rental and leasehold sectors.
The headline changes which are proposed in the next parliamentary term are:
Renter’s Rights Bill
The Government will be introducing new legislation to give greater rights to renters, ending no fault evictions and reforming grounds for possession. The Renter’s Rights Bill is expected to be introduced into Parliament in Autumn 2024 and once passed, will include:
- The abolition of no fault evictions, otherwise known as Section 21 evictions. This change will have huge implications for landlords who wish to terminate tenancies without supplying the court with any reason for their actions. In substitution there will be new grounds for possession, including the widening of some of the existing part 8 grounds.
- Empowering tenants to challenge excessive rent increases and strengthening their rights and protections overall which will encourage them to challenge any disproportionate actions by their landlord.
- Incorporating ‘Awaab’s Law’ (requiring social landlords to investigate and resolve reported health hazards) to the private rented sector. This will set out clear timeframes that landlords must act within to remedy any reported health hazards.
- Allowing tenants a right to request pets, such consent not to be unreasonably refused by the landlord.
- Applying a ‘Decent Homes Standard’ to ensure homes are safe, secure and hazard free.
Draft Leasehold and Commonhold Reform Bill and Leasehold and Freehold Reform Act 2024
Just before the parliamentary elections, the Conservative government passed the Leasehold and Freehold Reform Act 2024, which became law in May 2024. The new Labour government is committed to provide homeowners with more rights, power and protection over their homes by way of the implementation of the 2024 Act.
The government will also be publishing draft legislation on Leasehold and Commonhold Reform which aims to bring leasehold to an end and reinvigorate commonhold by a Bill that will include some of the following:
- Enact the Law Commission’s outstanding recommendations to further strengthen leaseholders’ rights to extend their lease, leasehold enfranchise, right to manage their buildings and ensuring commonhold is the default tenure.
- Modernise the legal framework. This will include restricting the sale of new leasehold flats. The government will consult on the best way to achieve this.
- Regulate ground rents for existing leaseholders so that there are no longer unregulated and unaffordable costs for leaseholders.
- End forfeiture for residential leaseholders.
The changes that our new Labour government will roll out are crucial to both leaseholders and renter’s, empowering them to challenge matters by bringing in more protection and rights to those individuals. These changes should encourage individuals to work together, as there will be transparency with obligations on all parties which would hopefully reduce disputes arising between leaseholders/freeholders and/or landlord/tenant.
If you want to know more or want to speak to a member of our team, please get in touch below.
