The property industry has seen substantial changes since the address made by King Charles in the last quarter of 2023 regarding property reform laws for the UK.
The aim of these laws is to afford property owners and renters more rights to the lands that they live on. While these bills were announced last year, they are set to be finalised and rolled out within the next four years.
There are several laws that are in different stages of being passed, and they endeavour to make owning and renting a property easier and cheaper. However, there are concerns being voiced about how the negative sides of these laws, especially for landlords.
The Leasehold and Freehold Reform Bill
While you live on a property you own, the land that the property you live on is not really yours. You have to lease the land, and after a certain amount of time, you will have to go about extending the lease for another few decades.
The leasehold bill is currently in the Committee Stage and is receiving feedback from industry experts and the public.
One of the changes we could see when the bill is passed is that it will be both easier and cheaper for homeowners to obtain. The previous leases allowed for extensions to run up to 90 years, but it has now increased to 990 years. The new bill will be especially beneficial to homeowners who have less than 80 years of lease left, as it will reduce the cost and help them save.
A freehold is owning the land your property is built on, and you can purchase the land from the landlord. This proposed law will make it easier for homeowners to buy their property as well as the land on it, they even seek to remove the waiting period for new homeowners.
Renters reform bill
This bill will seek to afford renters more benefits and security when renting in the private sector. It is important to note that this bill still has a way to go before it is passed.
In the interim, tenants will see more rights in their favour. For example, there are no pet bans on property to rent, unless there is a valid reason provided by the landlord.
While there are concerns that landlords will receive the short end of the stick, they will in fact have some benefits. If they are faced with disruptive and troublesome tenants, then they will be able to easily evict them.
Regulation of property agents
Among the reform law talks, there are discussions to regulate property agents in order to improve the customer experience. There are concerns regarding no standards or statutory requirements that are able to quantify if the agents are qualified for the position.
Summary
Since the end of last year, there have been talks of reforming property laws, following the King’s public address. Since then, there have been several bills that have begun the process to be passed into law. In the coming years, the property sector will see changes in leaseholds, freeholds, renting, and even the quality of estate agents. While there is still time for these laws to be passed, it would be a good idea to keep an eye on the news and learn how you might be affected by these laws.
One Response
We purchased the leasehold of our property in2022 as we found the terms were restrictive and could possibly cause problems for our children after our demise. We paid over £2500 to our solicitor and it took months to complete. The most suprising thing was after all the time and fees paid we received nothing from the Land Registry to confirm that we now owned the land to our property and that it is now Freehold. Apparently these details are updated online which is the modern way of doing things. We think at the very least aletter of acknowledgement should be sent to confirm the transaction.