What Does The King’s Speech Mean For Buy-To-Let Landlords and Tenants?

Of no surprise to political analysts, pollsters and most of those who read the media, the UK’s general election on the 4^th July was marked by a large Labour victory; transforming the country’s government from one party to its opposition for the first time in almost 15 years. This meant that when King Charles gave his speech to open Parliament, it was covering the topics that the new government intend to focus on across their first year.

Given Labour’s pre-election manifesto promises on property, has the King’s speech made any of these clearer immediately; or will we have to wait to see what’s in store for the industry? Here we pull out the key takeaways for landlords to look at, to help gain understanding of what we could see change in the near future.

What is the King’s Speech for?

The British monarch opens Parliament after its recess annually. This usually falls in November or December, but can vary depending on the time that a general election is called. In 2024, King Charles gave his speech on 17^th July, covering some 35 bills that the new government intends to deliver during their tenure.

While of course the speech (nor indeed the government who supplies its content) can guarantee exactly what is to occur during Parliament’s recall, it can give a good indication of the government’s key areas of focus.

For landlords, there were four areas of interest from which some information can be gleaned. These are as follows:

The Renter’s Rights Bill (Abolishing Section 21); England

The Renter’s Rights Bill was much discussed in the press ahead of the general election, as Labour had attempted and failed to pass a ‘Renter’s (Reform) Bill’; intending in particular to end the Conservative government’s ‘Section 21’ portion. The new legislation is described as “looking to provide a functioning sector for those who want it, and a secure stepping stone for aspiring homeowners”, and will apply only to England.

As a manifesto focus, we already have quite some detail on Labour Renter’s Reform Bill, including:

• The abolishment of Section 21, but with new possession grounds that allow landlords to reclaim their properties when needed

• Strengthening the rights and protections of tenants to challenge rent increases and end ‘bidding wars’ for rental properties

• Stopping the ‘unreasonable refusal’ of a pet in a rental property; but allowing landlords to request additional insurance cover for their presence

• Introducing the ‘Decent Homes Standard’ for the private rental sector to ensure safe and secure homes

• The application of ‘Awaab’s Law’ to set out legal responsibilities and timeframes for landlords to work to

• Creating a private rented sector database to provide local authorities with all landlord and tenant data – this is intended to help grant councils better powers to enforce against ‘rogue landlords’ in their geographical area

• The introduction of a new ombudsman service for quick and fairly priced dispute resolution between landlords and tenants

• Shifting grounds for discrimination to stop landlords refusing rental properties to those with children or in receipt of state funds (benefits).

English Devolution Bill

The English Devolution Bill aims to provide more local control over various regional matters, including housing and urban planning. It includes:

• Increased local authority powers – giving greater control over housing policies and planning decisions

• Regional funding allocations – providing more financial resources for local housing initiatives and infrastructure projects

• Customisable local policies – enabling regions to tailor policies to better fit their specific housing needs and challenges

Impact for Landlords

Local authorities may implement new regulations and policies affecting rental properties and landlords will need to stay updated on regional changes.

Increased funding for local housing may improve local infrastructure and amenities, potentially increasing property values.

The Leasehold and Commonhold Reform Bill; England and Wales

This Bill was actually passed on the final day of Parliament sitting under the last government, but it remains to be actioned. This leaves a Conservative-passed Bill with Labour drafting the legislation necessary to implement it. The Leasehold and Commonhold Reform Bill aims to give greater rights and powers to homeowners over their own homes as well as to reform leaseholds and freeholds – the former of which the Labour government intends to bring to an end. The King’s Speech didn’t give vast detail on this, but did mention the reinvigoration of commonholds, enacting the remaining recommendations from the Law Commission into written law, and tackling issues around existing ground rents.

The Planning and Infrastructure Bill; England and Wales, partially Scotland

One of the first Bills mentioned by the King in his speech was the Planning and Infrastructure Bill. This aims to make improvements to the planning system and processes at a local level while accelerating the speed of house building and infrastructure improvements. This will be achieved through modernising local planning committees and increasing their capacity, and introducing streamlines to the delivery process for ‘critical’ infrastructure to avoid unnecessary delays. For landlords looking to develop properties, this could mean speedier planning decisions and easier oversight of how such decisions are made. While specific targets have yet to be set, it’s hoped that some 1.5million new homes will be built over the next five years as a result of this new legislation.

So, What Happens Next?

While it may seem as though some of these changes could have a radical impact for landlords, it’s important to note that it’s not all happening just yet. The House of Commons will take a summer recess from 31^st July, returning on the 1^st September. It is at this point that Bills will start to be properly debated and work commenced on them once passed. For the majority of Bills, we can expect any changes to be introduced from 2025 onwards, and likely not enter into formal common law for a year or so after.

Of course, exactly what will happen is yet to be determined – but Primo Property Management shall continue to keep you updated and help explain all sector shifts as they happen.

If you are a buy-to-let landlord or a tenant and have any questions regarding the above, please don’t hesitate in contacting Primo Property Management to answer your questions.