King Charles announced two laws which will come into existence in 2024, to improve the property market. These are the Renters (Reform) Bill and the Leasehold and Freehold Bill.
In his speech, King Charles said: “My Ministers are going to bring a bill for reforming the housing market by turning it more affordable and accessible for the leaseholders to buy their freehold and for dealing with the fact that millions of homeowners face exploitation through stringent service charges.”
He further added: “Renters will be benefitting from greater security of tenure and improved value, while the landlords will derive benefit from reforms that offer the confirmation that they can get back their properties when the need arises.”
Renters (Reform) Bill
The second reading of the Renters (Reform) Bill took place on October 23. Certain features of the bill may turn into laws in 2024, however there is no such certainty. The Bill has the objective of improving renting in the private sector, promising improved quality of accommodation and more security for the renters. It also introduces powerful forces to eliminate disruptive tenants. Under the new guidelines, landlords have the power to throw out tenants who destroy the property or do not follow the agreement. Moreover, pets are allowed by renters and landlords cannot restrict that without a valid reason.
Leasehold and Freehold Bill
On November 27, the Leasehold and Freehold Bill was introduced in the Parliament. The early date on which it will be passed as a law will be in the summer, of next year.
Currently, if one’s property is a leasehold, they are the owners of the house but not of the land that it is sitting on, which means they have to pay ground rent to the freeholder. The new law will be banning this kind of homeownership, allowing people who buy a home in the future and own both the house and the land on which it is situated.
The new Bill has the aim of improving homeownership for millions of leaseholders who are in England and Wales by making it easier and cheaper for them to extend their lease term, purchase the freehold, and own the building’s management.
The new laws will enable the extension of the standard lease tenure from 90 to 990 years for both flats and houses, with zero ground rent. This translates to leaseholders being able to utilize their properties without worrying about lease extensions in the future.
The bill also eliminates the leaseholder’s need to own a property for two years before benefiting from the changes.
Changes proposed for holiday lets
Because of the shortage of housing in the UK, changes are put in place for holiday lets. The government is considering short-term lets to cater to the requirement for homes with tourism benefits. Two consultations are about to take place for putting in place the changes to holiday lets, likely to begin in 2024.
FAQs:
Which new property laws will be introduced in 2024?
Two new property laws are being introduced in 2024. These are the Renters (Reform) Bill and the Leasehold and Freehold Bill.
Why are changes introduced for holiday lets?
Due to the housing shortage in the UK, holiday let changes are being introduced. Two consultations are on the way for the same.
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