The year 2024 is poised to bring about significant changes to property law in England and Wales, with the introduction of reforms set to impact residential and commercial property owners, landlords, and tenants alike. In this article, we will explore some key developments expected this year.

Leasehold and Freehold Reform Bill

King Charles III’s announcement in November signalled the government’s intent to reform the procedures for enfranchisement and lease extension. The subsequent introduction of the Leasehold and Freehold Reform Bill to parliament aims to simplify and reduce the cost of enfranchisement and lease extensions for tenants.

Current legislation grants leaseholders the statutory right to extend their lease by 90 years at a peppercorn rent for a premium. The proposed changes give the tenant the right to extend their lease by 990 years and removes the two-year ownership requirement on the tenant.

The bill is also expected to include measures that require more transparency over service charges and a possible ban on the creation of new leasehold houses.

The timeline for the passage and implementation of this legislation remains uncertain at present.

BSA 2022 Implementation

The Building Safety Act 2022 has already brought much-needed reforms to the building safety regime. However, due to its size and complexity, the Act is being gradually implemented. Provisions related to high-risk residential flats and information storage for high-risk buildings are already in force. This year is expected to witness the implementation of provisions concerning the new New Homes Ombudsman and additional building safety measures.

As the industry adapts to the new building safety regime, an increase in litigation related to the Building Safety Act is anticipated.

Reform of security of tenure provisions for business tenancies

Commercial leases currently benefit from ‘security of tenure’ provisions, ensuring that a qualifying business tenancy does not automatically end upon the expiration of its term. Landlords can contract out of these provisions by following the procedures outlined in the Landlord and Tenant Act 1954. To contract out, the landlord must serve a warning notice on the tenant and the tenant must make either a declaration or a statutory declaration (if within 14 days of completion). In 2023 the Law Commission announced that there would be a consultation on the Landlord and Tenant Act 1954 which is due to start early this year.

Other expected changes include:

• The passing of the Renters Reform Bill which will ban no-fault evictions under section 21 of the Housing Act 1988
• New requirements for the sale of charity owned land as required by the Charities Act 2022
• The release of the Competition and Markets Authority’s report on housebuilding in England, Scotland and Wales

In summary, 2024 promises crucial property law reforms in England and Wales. From extended lease rights to heightened building safety measures, staying informed is essential for successfully navigating these upcoming changes.

 For further advice and assistance please contact our Commercial Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

COVID-19 has had a significant impact upon a Landlord’s ability to regain possession of their properties as well as introducing a number of practical issues for consideration as outlined below.

Possession proceedings

One of the key areas of focus within the Coronavirus Act 2020 (“the Act”) is the implementation of further protection for Tenants against eviction.

The implementation of the Act means that Landlords will be prevented from commencing possession proceedings until a minimum notice period of 3 months has been given to the Tenants.

Even Landlords who served Notice or issued proceedings prior to the implementation of the Act will be hindered by further restrictions imposed by the Civil Procedure Rules 2020, which state that all possession proceedings are to be stayed for an initial period of 90 days from 27 March 2020. These restrictions also apply to those who have already obtained a Possession Order against their Tenant and seek to enforce it by way of a warrant of possession (bailiff assistance).

Rent

Tenants remain obliged to pay their rent as it falls due in accordance with their Tenancy Agreement and there is no legal requirement for Landlords to reduce rent or allow rent-holidays.

Government guidance has however urged Landlords to try and work with their Tenants and be as flexible as is reasonable in the circumstances, such as agreeing a temporary payment plan should the Tenant honestly fall into financial difficulty as a result the pandemic.

From a practical point of view, it may of course be beneficial to accommodate Tenants who have otherwise complied with the terms of their Tenancy, rather than risk the property being empty for a short while after the restrictions have been lifted or being let to less suitable Tenants in the future.

Property Repairs

Much as the Tenant’s obligations under the Tenancy Agreement remain in force, so do the Landlord’s. This means that Landlords remain responsible for necessary repairs to their property, such as boiler repairs or plumbing issues.

Government guidance has however urged both Landlords and Tenants to take a ‘common-sense’ approach to this for non-essential repairs and that Landlords, agents and workmen follow the social-distancing measures wherever practicable.

If you are a Landlord and do reasonably face difficulties in arranging access to your property due to COVID-19, we would urge you to document your attempts to access and remedy any issues reported by your Tenants as well as the reasons for said attempts being unsuccessful.

For further advice and assistance, contact the Dispute Resolution team on 01604 828282 / 01908 660966 or email litigation@franklins-sols.co.uk.