The inaugural King’s Speech, to mark the start of the new parliamentary year, was delivered earlier this month and confirmed that proposed changes to the UK housing market are to be carried over into next year. James Richards, Partner of award-winning Sales and Lettings Agent, Maddisons Residential, discusses the key pieces of legislation hoped to bring a positive change to landlords, home owners and tenants.

King Charles’s speech reaffirms changes are due for the UK private rental sector

Within his speech, King Charles reaffirmed some of the changes to be made to the UK housing market, most notably for the private rental sector (PRS), the much-debated Renters (Reform) Bill and the Leasehold and Freehold Bill.

Of the Renters (Reform) Bill, which received its second reading last month, King Charles said: “Renters will benefit from stronger security of tenure and better value, while landlords will benefit from reforms to provide certainty that they can regain their properties when needed.”

Why no-fault evictions (section 21) for private tenants are on hold

The proposal to abolish no-fault (Section 21) evictions to bring more security to tenants will be seen through, but for now is being put on hold until “stronger possession grounds and a new court process are in place.” In other words, the government is looking to provide similar protection to landlords, so that they do not face lengthy delays when they have legitimate grounds to evict tenants, such as when there are serious rent arrears or antisocial behaviour.

Protecting the rights of private landlords are welcomed by property agents

Propertymark, a leading membership body for property agents, commented: “It is welcome that the UK government has recognised the importance of reforming the court system and protecting the rights of landlords to get their property back when things go wrong before significant changes to private renting in England are introduced.”

How are the rights of leaseholders being improved?

The Leasehold and Freehold Bill is aimed at improving the rights of leaseholders, including making it less expensive to extend leases and buy freeholds, increasing the standard lease extension term to 990 years, and requiring full transparency over service charges. It also proposes banning the creation of new leasehold houses.

Tunbridge Wells has a high proportion of flats, where approximately half are sold on a leasehold basis. Whilst this is unlikely to alter drastically, the rights of owners and buyers should be significantly bettered.

Continued delays to proposed legislation changes within the private rental sector will have a notable impact for the local market within Tunbridge Wells. Yet still, the promise of positive changes for the rights of landlords, homeowners and tenants are greatly welcomed.

If you have a private property you would like to rent or are hoping to extend your private rental portfolio, please contact us as we would be happy to advise on any questions you might have.