Every year, the monarch, whether King or Queen, addresses parliament with a speech outlining the government's priorities for the upcoming year. This tradition precedes the Autumn Statement, scheduled for November 22, during which the government's economic plans are detailed.
Today marked King Charles III's inaugural speech as the reigning monarch. Here are three significant announcements that should be of particular interest to letting agents and landlords:
- Enhanced Security for Renters and Reassurance for Landlords: A Continued Pledge to the Renters (Reform) Bill
In his address, the King reaffirmed the government's commitment to strengthening tenants' rights in England while also providing reassurance to landlords. These measures are part of the upcoming Renters (Reform) Bill, which successfully passed its second reading in Parliament in October 2023.
One of the pivotal aspects of the Renters (Reform) Bill is the abolishment of Section 21, often referred to as "no-fault evictions." This commitment was first introduced in the Queen's Speech of 2019 and has consistently been a headline feature of the bill. In the initial version of the bill published in May 2023, the government reiterated its determination to eliminate Section 21, along with the amendment and strengthening of grounds for Section 8, which will assist landlords in regaining possession of their properties.
In October 2023, the government emphasized the necessity for significant reforms within the court process before the abolishment of Section 21 could proceed. As a result, specific timelines remain uncertain, and the King's Speech did not provide further clarity on when or under what criteria these court reforms will take place.
- Introduction of a Leasehold Bill
King Charles III emphasized the government's dedication to making it more affordable and straightforward for homeowners to purchase the leasehold of a property while putting an end to what has been referred to as "punitive" service charges.
Your estate agency should keep a vigilant eye on future legislation related to leasehold reforms. These reforms are expected to encompass measures such as making it significantly easier for leaseholders to buy the freehold of a property or extend their leasehold, capping ground rent costs at 0.1% of the freehold value (effectively introducing "peppercorn" ground rents), and introducing changes to ownership requirements for leaseholders to access these reforms, including the need to own a property for a minimum period.
Property Industry Eye has reported the possibility that, in the future, all houses may be sold as freehold properties.
- Ongoing Commitment to Achieving Net Zero and Energy Efficiency
Another noteworthy commitment, with implications for the property sector, is the government's pledge to achieve Net Zero emissions by 2025. The government seeks to safeguard energy independence and invest in renewable energy sources.
Over the past few years, the surge in energy bills due to the cost of living crisis and the conflict in Ukraine has been a significant concern. The government has expressed its commitment to facilitate a smooth transition to Net Zero without imposing undue burdens on households.
Previously, the government had announced that landlords would be required to upgrade their properties to achieve an EPC C rating by 2025 for new tenancies and 2028 for all tenancies. However, in September 2023, Prime Minister Rishi Sunak announced that homeowners and landlords would no longer be held to these original energy efficiency targets within the specified deadlines.
Please note that this article is intended as a guide and does not constitute legal advice. For more information, please visit gov.uk.
