The King’s speech 2023: leasehold, freehold and renters (reform) bill highlights

Charles III delivered his first King’s speech as monarch to parliament on 7 November 2023.

In the speech, the King announced the government’s commitment to rent reforms and leasehold changes.

To read the King’s speech in full, click here.

Below we highlight what we believe to be the main focus points for those who have been following the development of these Bills.

Leasehold and Freehold Bill

To read the proposals in full, click here.

The proposals fall under three headings:

  1. Empowering leaseholders
  2. Improving leaseholders’ consumer rights
  3. Reforming the leasehold market

The market’s response will be a function of the detailed proposals, which are not yet clear.  For the time being, the following elements stand out:

  • The proposal to increase the non-residential threshold from 25% to 50%.
  • The removal of the two-year ownership requirement before leaseholders can benefit from the leasehold reform acts.
  • No reference Marriage value.
  • A proposal to consult on capping existing ground rents.

Renters reform Bill

The Bill aims to “improve renting for the long term” and the proposals are set out here.

The market’s response will be a function of the detailed proposals, which are not yet clear.  For the time being, the following elements stand out:

  • Retention of S21 until a new court process is in place.
  • “Protect the student market” by introducing a new ground for possession to guarantee possession each year for a new group of students.
  • Scrapping of proposals to require landlords to meet EPC C from 2025.

If you would like to discuss these issues, or the wider legislative proposals, or the implications from those proposals, please contact James Hyman, head of residential agency or Victoria Martin, residential valuations.

The information contained here has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. Cluttons LLP does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

Contact

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James Hyman

Partner, head of residential agency

Head office

T +44 (0) 20 7407 3669
James Hyman, head of residential agency, Cluttons
Contact

If you do not wish to receive further communications from us, please email [email protected]. More details on how to opt out can be seen in our Privacy Policy.

Victoria Martin

Partner, residential consultancy

Head office

T +44 (0) 20 7647 7022
Victoria Martin