Big changes are on the horizon for homeowners and renters alike as King Charles delivered Labour’s first legislative agenda in Parliament.

The speech, marking the second King’s Speech of his reign, outlined Labour’s ambitious plans to reform the housing market with three key bills: the Renters’ Rights Bill, the Draft Leasehold and Commonhold Reform Bill, and the Planning and Infrastructure Bill. These bills aim to tackle issues like “no-fault” evictions, empower homeowners, and streamline the planning process for new homes.

Renters’ Rights Bill – Putting Power Back in the Hands of Tenants

Addressing the growing concerns of the 11 million people in private rentals, the Renters’ Rights Bill is set to be a game-changer. Prime Minister Sir Keir Starmer emphasised the need to address “insecurity and injustice” faced by many renters, promising “tough new protections”.

Here are some key takeaways from the Bill:

• End of “No-Fault” Evictions: This controversial practice, allowing landlords to evict tenants without reason, will be abolished, providing renters with much-needed security.
• Challenging Rent Increases: Tenants will have greater power to challenge unreasonable rent hikes, preventing unfair financial burdens.
• Stopping Rental Bidding Wars: The Bill aims to stop the exploitative practice of landlords and letting agents pitting potential renters against each other to drive up prices.
• Pet-Friendly Policies: Tenants will have the right to request keeping pets, with landlords obligated to consider these requests reasonably and fairly.
• Awaab’s Law: This crucial addition sets clear legal timelines for landlords to address serious hazards in their properties, ensuring safer living environments.

These changes aim to shift the balance of power, offering greater security and stability to tenants and allowing them to build stronger roots in their communities.

Draft Leasehold and Commonhold Reform Bill – Taking Aim at “Feudal” Practices

Labour’s plans extend beyond rentals, with the Draft Leasehold and Commonhold Reform Bill targeting what they call the “feudal” leasehold system. This system has left many homeowners feeling trapped by unfair and often costly arrangements.

The proposed changes include:

• Greater Rights and Protections for Leaseholders: Building on the existing Leasehold and Freehold Reform Act 2024, the bill will further empower homeowners with increased control over their properties.
• Tackling Unfair Ground Rents: The bill aims to address the issue of “unregulated and unaffordable” ground rents, which have burdened many leaseholders.
• Ending “Draconian” Forfeiture Threats: Leaseholders will be protected from the threat of losing their homes due to minor breaches of lease agreements.
• Promoting Commonhold as the Default: The government plans to make commonhold, a fairer form of property ownership, the standard for new flats, phasing out the problematic leasehold system.

Planning and Infrastructure Bill – Building for the Future

Recognising the urgent need for more housing and improved infrastructure, the Planning and Infrastructure Bill promises to streamline the planning process and accelerate construction.

Key elements of the bill include:

• Speeding Up the Planning Process: Simplifying and modernising the planning system is expected to significantly reduce delays in building new homes and essential infrastructure.
• Boosting Local Planning Capacity: The bill aims to empower local planning authorities, enabling them to provide better services and handle the increased workload.
• Aligning Planning with Broader Strategies: The government intends to ensure that planning decisions align with its industrial, energy, and transport strategies, promoting sustainable growth.

These comprehensive reforms signify a potential turning point for the UK housing market, promising a fairer and more secure future for both renters and homeowners.