Each year, ahead of the Autumn Statement, parliament is opened by the monarch who gives a speech outlining the government’s priorities for the year ahead and an overview of the its economic plans. In his first King’s Speech on 7th November 2023, Charles III has made three announcements that are of concern to property buyers, landlords and agents.
Renters (Reform) Bill
The government’s commitment to the Renters (Reform) Bill was reconfirmed, with a new bill for leaseholders. The bill aims to provide more security for renters and strengthening the rights of tenants in England – while providing some reassurance for landlords. The Renters (Reform) Bill underwent its second reading in parliament in October 2023.
The abolition of Section 21, also known as ‘no fault evictions’, was first outlined in the Queen’s Speech in 2019. The first version of the bill, published in May 2023, introduced the government’s commitment to abolishing section 21, and also stated that, in addition, grounds for section 8 would be amended and strengthened to assist landlords in recovering their properties.
This was followed in October 2023 by the government stating that the courts process would need to be significantly reformed before section 21 could be abolished. However, the King’s Speech gave no clarity as to when or to how the courts needed to be reformed.
Leasehold Bill
There was an assertion of commitment to the proposed Leasehold Bill which would make it cheaper and easier for homeowners to purchase or extend a property’s leasehold and also end punitive service charges and ground rents.
Ground rent costs would be capped at 0.1% of the freehold value effectively introducing “peppercorn” ground rents.
There would be changes to the ownership requirements before leaseholders could access these changes, including the requirement to own a property for two years. There might also be the possibility that in the future all houses will be sold as freehold.
However, the proposed ban has not been included in the Bill this week and the government now says it will be added as an amendment at a later stage as it passes through parliament.
Net Zero
There is still the commitment to Net Zero and better energy efficiency within the property sector. At the moment, the target for reaching Net Zero emissions is 2025. Safeguarding “energy independence” is also a priority as well as investing in renewable energy sources.
With households facing rocketing energy bills as a result of things such as the cost of living and Russia’s war in Ukraine the government has committed to helping householders to transition “without adding undue burdens on households.”
The government has previously said it would require landlords to upgrade their properties to an EPC rating of C or above by 2025 on new tenancies, and 2028 for all tenancies. However, this was revoked in September 2023, when Rishi Sunak said that homeowners and landlords would no longer be required to meet these new energy efficiency targets by the original deadlines.