Key Housing Legislation Announced in the King’s Speech 2024: What It Means for Landlords and Tenants

The King’s Speech 2024 introduced several pivotal bills poised to reshape the housing landscape for landlords, tenants, and the broader sector. Among the most noteworthy are the Renters’ Rights Bill, the English Devolution Bill, the draft Leasehold and Commonhold Reform Bill, and the Planning and Infrastructure Bill.

These bills contain a variety of provisions designed to enhance the rental market, improve property ownership conditions, and modernize urban planning. Below is an overview of these bills and their potential implications for landlords and tenants.

Renters’ Rights Bill – King’s Speech 2024

Overview
The Renters’ Rights Bill, Labour’s alternative to the previously shelved Renters (Reform) Bill, seeks to revamp the private rental sector and provide stronger tenant protections.

Key Provisions

• Abolition of Section 21: Landlords must provide clear and expanded possession grounds to reclaim their properties.
• Enhanced Tenant Rights: Tenants can challenge rent increases, and rental bidding wars are prohibited.
• Pets in Rentals: Landlords must reasonably consider tenant requests for pets, with the option to require insurance for potential damages.
• Decent Homes Standard: Establishes a standard for quality living conditions in the private rental sector.
• ‘Awaab’s Law’: Imposes legal obligations and timeframes for landlords to address property issues.
• Digital Private Rented Sector Database: A centralized resource for landlords, tenants, and councils.
• New Ombudsman Service: Offers faster, cheaper dispute resolution for landlords and tenants.
• Anti-Discrimination Measures: Prohibits discrimination against tenants on benefits or with children.
• Strengthened Local Council Enforcement: Empowers councils to better identify and penalize rogue landlords.

Impact on Landlords

• Abolition of Section 21: Landlords must now provide valid reasons under expanded possession grounds, making thorough documentation essential.
• Tenant Rights: Rent increases must be justified, and tenants have the right to dispute unjustified hikes, reducing the prevalence of rental bidding wars.

Impact on Tenants

• Pets in Rentals: Tenants can request to keep pets, though landlords may require pet insurance.
• ‘Awaab’s Law’: Ensures landlords address reported issues within set timeframes, improving living conditions.

English Devolution Bill – King’s Speech 2024

Overview
The English Devolution Bill aims to grant more local control over regional matters, particularly in housing and urban planning.

Key Provisions

• Increased Local Authority Powers: Greater control over housing policies and planning decisions.
• Regional Funding Allocations: More financial resources for local housing initiatives and infrastructure projects.
• Customizable Local Policies: Regions can tailor policies to address specific housing needs and challenges.

Impact on Landlords

• Local Authority Powers: New regulations and policies may emerge at the local level, requiring landlords to stay informed about regional changes.
• Property Values: Enhanced funding for local initiatives could improve infrastructure and amenities, potentially increasing property values.

Impact on Tenants

• Affordable Housing: More localized control and funding could lead to better-targeted affordable housing initiatives.
• Customizable Policies: Tailored regional policies may address specific housing challenges, improving living conditions.

Leasehold and Commonhold Reform Bill – King’s Speech 2024

Overview
The draft Leasehold and Commonhold Reform Bill addresses long-standing issues in leasehold and commonhold property ownership, aiming for fairer terms and greater transparency.

Key Provisions

• Leasehold Reforms: Simplifies and reduces ground rents.
• Commonhold Improvements: Enhances the framework for commonhold ownership, making it a more viable alternative to leasehold.
• Transparency Measures: Provides clearer information and rights for leaseholders.

Impact on Landlords

• Leasehold Reforms: Reduced ground rents may affect income from leasehold properties, though simplified processes could attract more buyers.
• Commonhold Improvements: The more straightforward ownership model may reduce management complexities and increase property value.

Impact on Tenants

• Easier Homeownership: Simplified terms and clearer information may make buying leasehold or commonhold properties more accessible.
• Transparency: Greater transparency helps tenants understand their rights and obligations, leading to more informed decisions.

Planning and Infrastructure Bill – King’s Speech 2024

Overview
The Planning and Infrastructure Bill aims to modernize the planning system, streamlining development processes for more efficient growth.

Key Provisions

• Streamlined Planning Processes: Faster approvals for new developments.
• Infrastructure Improvements: Increased investment in public infrastructure to support housing growth.
• Sustainable Development Focus: Prioritizes environmentally friendly and sustainable building practices.

Impact on Landlords

• Streamlined Processes: Quicker approval times can expedite development, allowing rental properties to reach the market faster.
• Infrastructure Improvements: Better infrastructure could boost property desirability and rental income potential.

Impact on Tenants

• More Housing Options: Streamlined planning and increased infrastructure investments are likely to expand housing options.
• Sustainable Development: Sustainable practices may lead to healthier, more energy-efficient homes, reducing living costs.

Significance of the King’s Speech 2024 Announcements

The King’s Speech 2024 has introduced critical legislation set to reshape the housing sector. Understanding these proposed changes and their implications will be essential for both landlords and tenants as they navigate the evolving landscape of England’s private rental market and property ownership.