After every General Election, there is a ceremony to reopen parliament held by the Monarch in Westminster. Among the odd traditions practiced within the ceremony, including taking an MP “hostage” in Buckingham Palace (this dates back to the 1600s and was started to ensure the monarch’s safety whilst in Westminster), the Monarch will make a speech outlining the next government’s agenda and which bills they are looking to bring into law over their tenure. This year 40 bills were announced over the King’s 13-minute-long speech.
We’ve rounded up the key bills property investors should be to taking note of:
Renters’ Rights Bill – This proposes to end Section 21 evictions, otherwise know as “no fault” evictions to give renters more power. This does not mean landlords cannot evict problem tenants or seek to have the property vacant to sell, rather it will prevent rogue landlords evicting good tenants in order to get out of carrying out genuine required repair works or to immediately relet the property to someone else for a much higher price. Should a tenant go into rental arrears, damage the property, conduct anti-social behaviour or otherwise be in breach their tenancy agreement, then a landlord can still serve them an eviction notice. Landlords can also still evict a tenant should they need the property for personal use or for family members.
The Renters’ Rights Bill can positively impact property investors by promoting tenant stability, attracting high-quality long-term tenants, reducing legal disputes, enhancing property reputation, improve landlord-tenant relationships and encouraging property improvements. By embracing the principles of the bill and ensuring compliance, investors can create more attractive, stable, and valuable rental properties. Staying informed and proactive in implementing tenant-friendly policies will be crucial for maximising these benefits and succeeding in a competitive rental market.
Draft Leasehold and Commonhold Reform Bill – This is a draft bill so will go through a consultation period before being presented to parliament but would give leaseholders power to extend their lease and buy their freehold, taking over the management of the building. It also proposes tighter regulation on ground rents and the sale of new leasehold flats.
The Draft Leasehold and Commonhold Reform Bill can positively impact property investors by enhancing property rights, increasing property value, simplifying management, reducing costs, and improving market appeal. Importantly, it also protects leaseholders from predatory freeholders, who use unchecked ground rent to turn profit without adding value to properties or the land they sit on. By embracing commonhold ownership and staying informed about the bill’s provisions, investors can capitalise on these benefits, creating more valuable and attractive property portfolios. Implementing strategies to transition to commonhold and leveraging government incentives will be key to maximising the positive impacts of this reform.
Planning and Infrastructure Bill – This bill is aimed at freeing up planning laws for development in an attempt to increase the supply of housing and critical infrastructure projects. This gives planning authorities more power and also stops landowners charging “hope values” for developments with planning on them.
The Planning and Infrastructure Bill provides several significant benefits for property investors, from streamlined planning processes and enhanced infrastructure investment to incentives for sustainable development and support for urban renewal. By understanding and leveraging these advantages, property investors can make more informed decisions, optimise their investments, and achieve higher returns in a more predictable and supportive environment. Staying updated on the latest developments and strategically positioning investments will be key to maximising the positive impacts of this bill.
English Devolution Bill – This would invite local councils to take more power in decision making over infrastructure and transport planning as well as other things with the aim of taking power away from Westminster and giving it to those who know their area best.
The English Devolution Bill offers significant advantages for property investors by promoting localised decision-making, increasing infrastructure investment, and fostering tailored economic development strategies. In recent years, Manchester has been a fantastic example of how this can be a success, and we hope to see this replicated across the country, bringing all areas up to speed with the UKs burgeoning major cities. By understanding these benefits and strategically positioning investments to align with local priorities, property investors can capitalise on the opportunities presented by devolution. Staying engaged with local authorities, participating in community discussions, and staying informed about regional development plans will be crucial for maximising returns in this evolving landscape.
The next few weeks will be important for Keir Starmer. To get his proposed Bills through parliament it will be crucial to act fast and ride the political momentum of his landslide victory.
These 4 Bills, if legislated and brought through parliament effectively, will have positive impacts for property investors and the wider economy. With a focus on “getting Britian building again”, Rachel Reeves and Keir Starmer have committed to fixing the housing crisis, with the wider aim of fostering a strong investment culture within the UK. By bringing together public and private investment the new Labour government is dedicated to economic growth, something which can only benefit investors and the economy as whole.
As we’ve seen time and time again, the key to good investment strategy is buying before the major growth phase. This will very likely arise with the successful implementation of the discussed policies, so get in contact with us if you’re interested in investing in UK property.
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