Residential leasehold reform
The Leasehold and Freehold Reform Act 2024 was amongst the final pieces of legislation to be enacted by the outgoing Government in July 2024. Amongst other things, it provides for:
- the prohibition of new long residential leases of houses;
- variations to the exiting statutory rights of tenants under long residential leases to acquire the freeholds of their houses or to extend the leases of their houses or flats;
- an extension of tenants' right to manage a building to more buildings;
- a new right for tenants to buy out the rent payable under their leases;
- new regulations to improve tenants' rights in relation to the payment of service charges and other fees under a lease;
- new provisions for the regulation of residential estate management;
- new regulations in relation to rentcharges; and
- some amendments to the Building Safety Act 2022 regarding the remediation of building defects and the insolvency of entities with repairing obligations relating to certain kinds of buildings.
Most of these provisions are not yet in effect and will require secondary legislation to be passed in order to add flesh to the bones of the legislation.
The Renters' Rights Bill is currently undergoing its second reading in the House of Commons. Instead of introducing the previous Government's Renters Reform Act, which we discussed here, the new Government has put forward a new Bill, although there are distinct similarities. Its key provisions are as follows:
- the abolition of section 21 evictions and, with that, the end of the assured shorthold tenancy. From the date of implementation, all assured tenancies will be periodic tenancies;
- if tenants are evicted by the Court, they will be given more time than under the current regime to find a new home;
- tenants will be given the right to appeal excessive above-market rents;
- a new Private Rented Sector Landlord Ombudsman will be established, to resolve tenants' complaints about their landlord;
- a Private Rented Sector Database will be set up to help local authorities and prospective tenants ensure landlord compliance;'
- tenants will have stronger rights to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property;
- the Decent Homes Standard will apply to the private rented sector to give renters safer, better value homes. This will require new regulations to set out the details of what this standard will entail. In addition, 'Awaab's Law' will also apply to the sector, which will require private rented sector landlords to make good certain safety hazards in a rented home (including damp and mould) within a specified time period;
- it will become illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children;
- it will become illegal for landlords or agents to accept offers made above the asking rate set out in the advertising materials; and
- new measures will be introduced to strengthen local authority enforcement powers.
NPPF Consultation
As we explored in an earlier briefing, growth and housing are two of the key priorities for the new Government and the planning system sits at the heart of both. In the summer, the new Ministry of Housing, Communities and Local Government issued a consultation on the changes it proposes to make to the National Planning Policy Framework (NPPF) in order to achieve sustainable growth. The most eye-catching proposals revolve around their proposed changes aimed at boosting the number of houses built per annum, to meet the Government's pledge to build 300,000 new homes per year. These include a new duty on local authorities to identify 'grey belt' land within the Green Belt in their area, which will then be brought forward into the planning system (through both plan and decision-making) to meet development needs. The consultation closed at the end of September, and we await the outcome with interest.
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