What Housing Laws Will Be Introduced By The New Government?

Planning and Infrastructure Bill

The Planning and Infrastructure Bill will target what is known as NIMBYism (Not In My Back Yard) and expedite the process of getting planning permission for house building and infrastructure. During their election campaign the Labour manifesto promised to build 1.5 million houses and this is a part of that to make getting planning permission easier. 

The bill introduces several reforms to streamline and expedite infrastructure and development projects:

1. Simplified Consent Process: Reduces bureaucratic delays for infrastructure projects, aiming for quicker initiation and completion.
2. Modernised Planning Committees: Enhances the efficiency of application processing to enable faster decision-making and project launches.
3. Compulsory Purchase Compensation: Ensures fair but not excessive compensation for landowners, balancing development needs with property rights, crucial for affordable housing and infrastructure.
4. Unlocking Development Sites: Improves land assembly processes to speed up housing construction and increase affordability by uniting separately owned parcels of land.
5. Nature Recovery and Development Funding: Uses development projects to fund environmental conservation, balancing ecological and housing needs.

More houses on the market should assist first-time buyers in purchasing a house and also make the housing market fairer for everyone. Mortgages could become more affordable, therefore reduce the risk of repossession. However, this is speculative and the only way to know how the market will react is to build the houses. 

Leasehold and Commonhold Reform Bill

The government plans to produce a draft Leasehold and Commonhold Reform Bill, with consultations and potential introduction to Parliament no earlier than late 2025. Currently, ground rent and leasehold bills at best add an additional cost only to homeowners. At worst, leaseholders can lose their homes through forfeiture.

The draft legislation aims to:

1. Enhance Leaseholder Rights: Implement remaining Law Commission recommendations to improve lease extension rights and the Right to Manage.
2. Regulate Ground Rents: Address unregulated and unaffordable ground rents, which affect 86% of leaseholders in England, averaging nearly £300 annually.
3. Remove Forfeiture Threat: Protect leaseholders from losing their homes over small unpaid debts like ground rent.
4. Promote Commonhold: Make commonhold the default tenure for new leasehold flats, with a comprehensive legal framework to support this.
5. Address 'Fleecehold' Issues: Consult on addressing unfair maintenance costs in private housing estates, affecting up to 1.75 million homes with average new build management charges of £350 annually.

Extending protections first put in place by the Leasehold and Freehold Reform Act 2024 for consumers will further make leasehold properties fairer for people owning such properties. 

Renters Rights Bill

The Renters Rights Bill is the Labour government version of the Renters Reform Bill. It introduces several significant reforms to the private rented sector:

1. Abolition of Section 21: Eliminates no-fault evictions, with only about 6% of tenants currently facing eviction through this method. Landlords will have clear grounds for repossession.
2. Enhanced Tenant Rights and Protections: Tenants can challenge unreasonable rent increases and rental bidding wars will be banned. It will be easier for tenants to keep pets, subject to landlord approval and insurance.
3. Introduction of Decent Homes Standard: Sets safety and security standards for all privately rented properties to reduce poor quality rentals.
4. Application of Awaab's Law: Requires landlords to address reported health hazards within specific timeframes to improve living standards.
5. Creation of a Digital Database: Provides essential information for landlords, tenants, and councils to promote transparency and compliance.
6. New Property Ombudsman: Establishes a fair and impartial process for dispute resolution, avoiding court proceedings.
7. Anti-Discrimination Measures: Prohibits landlords from discriminating against tenants receiving benefits or those with children.
8. Strengthened Local Council Powers: Enhances councils' enforcement abilities to identify and penalise bad landlords.

It is very similar to the Renters Reform Bill and will provide similar protections for renters including protections against repossession. 

English Devolution Bill

The English Devolution Bill was only mentioned briefly in the King's Speech, so there is little information about what it may include. However, it is fair to say that it will attempt to boost the economy in local areas by providing local councils with powers they need to develop empty commercial property. It could make local areas more appealing to homeowners and make living there more sustainable.

The new bill includes:

1. Local Growth Plans: Requires Combined Authorities to create statutory Local Growth Plans, enabling the development of regional strategies for the social economy.
2. Right to Buy Community Assets: Empowers local communities with a strong right to buy valued assets like empty shops, pubs, and community spaces to revitalise high streets and reduce vacant premises.
3. Strengthened Community Powers: Enhances communities' abilities to own and protect important local assets, fostering vibrant high streets and town centres.

Stop Your Home From Repossession

HMS helps people prevent the repossession of their homes. For many, these housing market improvements come too late, leading to eviction or repossession. It can be difficult to know what to do if this is happening to you. 

If you are facing this situation, contact us immediately. We can stop repossession and help you stay in your home.

Call us now at 0800 298 0571.