King’s Speech Confirms Renter’s Reform and Plans to End Leasehold
King Charles delivered the first King’s Speech for a Labour Government in 15 years. The speech introduced 40 new Bills proposed by Keir Starmer’s Government, outlining an ambitious legislative agenda aimed at addressing key issues facing the nation.
Here, we highlight some of the most relevant reforms for our sector:
Renter’s Rights
The new Renters' Rights Bill includes significant measures originally proposed by Michael Gove before the election. Key elements of this legislation focus on enhancing tenants’ rights and protections, including the elimination of no-fault evictions under Section 21.
The King said: “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.”
For more information on the Renters' Rights Bill, please see pp.68-70 of the King’s Speech background briefing notes HERE
Leasehold And Commonhold Reform
The Draft Leasehold and Commonhold Reform Bill represents a pivotal move towards ending the leasehold system and revitalising commonhold ownership. The Government also plans to implement the Leasehold and Freehold Reform Act 2024, empowering leaseholders with more rights, powers, and protections over their homes. This includes simplifying the process for leaseholders to gain full ownership and making it easier to convert to commonhold.
The King said: “Draft legislation will be published on leasehold and commonhold reform.”
For more information on the Leasehold and Commonhold Reform Bill, please see pp.74-76 of the King’s Speech background briefing notes HERE
TPI Reacts
In response to today's King's Speech, Andrew Bulmer, CEO of The Property Institute, said: “Many of the announced reforms were anticipated, including forthcoming bills on energy and transport, and a renters’ rights bill incorporating the abolition of Section 21. These were widely trailed in advance.
“It was less certain whether the Government would prioritise leasehold and commonhold reform amid an already crowded agenda, but it is encouraging to see the proposals for this particular bill. This new legislation will go further, introducing greater powers for residents to take control, an end to the sale of leasehold flats, controls on forfeiture, and regulation of ground rents. We await the details on the ministers’ intentions regarding these reforms, but there is a clear opportunity for such tenure reform to introduce practical and proportionate regulation for our sector and improving transparency and upfront information for leaseholders.
“The introduction of the Great British Energy and a focus on clean energy production gives clear indication that the Government has its eye on the 2050 Net Zero targets, and we hope that in its ambition to lower energy bills and reduce carbon emissions, it also looks at removing barriers to decarbonising leasehold blocks and to make fair provisions for grant funding for retrofits and energy efficiency improvements for those in ‘vertical village’ communities.
“Notably, building safety and the remediation of unsafe buildings was absent from today’s speech; we urge Government to take notice of the immediate need to fund and fix the thousands of unsafe buildings.
“The new Government’s broad intention to improve living standards is clear and most welcome. The common debate around housing focuses on numbers, with little mention or consideration of quality and living experience. The Property Institute has been advocating for the need to improve the living standards and experience of resident communities and we are pleased to see the government’s attention on this.”
Read a copy of the King’s Speech Briefing Notes HERE
