What will this year bring for the UK property sector, with a raft of new laws on the way? After a lengthy journey through parliament, the Renters’ Rights Bill will be passed into law this spring. Another highly anticipated piece of legislation – the Leasehold and Freehold Reform Act 2024 – is expected to reach the statute books this year or next. Home buyers will also see changes to Stamp Duty in 2025.
The new laws promise to transform the UK property market, affecting renters as well as home movers looking to buy property in East London. Naturally, we’ve been working through the latest information so we can prepare our clients for the changes ahead. This month, our Newbury Park estate agents have teamed up with our Ilford letting agents to bring you the latest updates.
The Renters’ Rights Bill – what can tenants and landlords expect?
An end to Section 21 ‘no-fault’ evictions: currently, landlords can use Section 21 to evict tenants who have done nothing wrong without a valid reason. In future, they will use an enhanced version of the Section 8 notice (previously used for renters who are at fault) for evictions. Landlords will only be able to give notice to quit for specific purposes defined in law. Reasons include selling the property or needing it as a primary residence for the landlord or their family.
Replacing fixed-term agreements with periodic tenancies: we’ll see an end to short-term rental agreements. Under the new legislation, tenancies will simply roll on until either party wants to end them. Landlords will be unable to evict renters for the first twelve months of the tenancy (unless the tenant breaches their agreement) and must give four months’ notice.
Ending unfair rent price increases: landlords and their agents will be fined if they encourage ‘bidding wars’, where applicants compete to offer above the asking price for a rental property. Rent rises will be restricted to one per year, and landlords will be unable to charge more than the current market value. Tenants will be empowered to challenge unreasonably high rent increases.
Introducing stronger anti-discrimination laws: landlords will no longer be able to discriminate against tenants with children or those on benefits. Rules will be changed to make it easier for tenants to keep a pet. The Bill says pet requests should not be ‘unreasonably refused’, although landlords can insist on pet insurance.
Improving the quality of rental accommodation: the government intends to improve the quality and safety of private rentals, with minimum standards established by the Decent Homes Standard. Awaab’s law, created to protect social housing tenants from harmful mould and damp, will now be applied to the private rented sector.
Dispute support and greater transparency: a new Ombudsman service will provide a “quick, fair, impartial and binding resolution” for disputes. A national database of private rental properties will help landlords understand their legal position and stay compliant. It will also allow local authorities to monitor properties, to ensure landlords are fulfilling their legal obligations.
What should landlords do before the Bill becomes law?
Landlords who provide good quality, safe homes should have nothing to fear from the new laws. Now is a good time to make sure that all legal checks (such as gas safety and electric) are up to date. Ensure that your property is free of mould and that fire and carbon monoxide alarms are working correctly.
Carry out any basic repairs needed to keep it in good order.
Leasehold and Freehold Reform – how will the rules change?
The media has recently reported a rise in leaseholder complaints concerning unfair service charges and ground rent costs. The new legislation will increase transparency and fairness around the fees charged for building management. It will also improve the standards of service provided by freeholders and their management companies.
Upcoming rule changes include an end to the ‘two-year rule’. This is a rule under which leaseholders must wait 24 months after purchase to apply to buy the freehold or extend their lease.
Also on the way is a new ‘Right to Manage’ measure, which will allow homeowners to take over their building’s management. Leaseholders will also gain right to appeal against unfair service charges. Further legislation will be introduced to deal with unregulated ground rents and fees for homeowners living on estates who are forced into paying fees for land maintenance.
Buying or renting in East London?
Are you looking for a rental property in Barkingside, Newbury Park, Wanstead or Ilford? We would love to help you find your perfect home.
If you are buying a home in one of these areas, be aware that on March 31st, the temporary Stamp Duty cut introduced in 2022 will end, and rates will return to previous levels.
Our sales team has some fantastic properties available to view, so get in touch now!
Simply get in touch via our website or phone 020 3972 7341 or email info@oaklandestates.co.uk to speak to one of our friendly, knowledgeable agents.
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