What could be in the 2023 King’s speech when it comes to housing?

King Charles

King Charles will outline the government’s law-making plans in a speech to parliament today in what will be his first ceremonial address as monarch.

Ahead of the Autumn Statement later this month, the measures in the King’s Speech will also be the first such blueprint of Rishi Sunak’s government, and likely the last before the next UK general election, expected to be held next year.

Sunak said: “This will be the first King’s Speech in seventy years and the legislation we will bring forward is part of our plan to build a better future for the next seventy.”

“To make the real change this country needs, we will bring forward bills that strengthen our society, help people feel safer in their own communities and give a sense of pride in the place they call home,” he added.

We take a look at what is likely to – and not – be included.

Renters (Reform) Bill

In its 2019 general election manifesto, the government committed to introducing a “better deal for renters”, including “abolishing ‘no fault’ evictions and only requiring one ‘lifetime’ deposit which moves with the tenant”.

In the 2022 Queen’s Speech, the government announced that it would be introducing the Renters Reform Bill in the 2022–23 parliamentary session. It stated that the purpose of the bill would be to:

“Fulfil the manifesto commitments to abolish so-called ‘no fault’ section 21 evictions and strengthen landlords’ rights of possession, delivering on the levelling up mission to halve the number of non-decent rented homes by 2030 and create a rental market that is fairer and more effective for tenants and landlords.”

The Renters (Reform) Bill was introduced by the government in the House of Commons on 17 May 2023. The main elements of the bill included measures to:

+ Abolish the use of ‘no fault’ evictions by removing section 21 of the Housing Act 1988 and move to a “simpler tenancy structure”.

+ Amend and strengthen the grounds on which landlords can seek to repossess properties, for example, in cases of anti-social behaviour and repeated rent arrears.

+ Introduce a new private rented sector ombudsman.

+ Create a privately rented property portal to help landlords understand their legal obligations and demonstrate compliance.

Michael Gove

+ Provide stronger protections against “backdoor evictions” by ensuring that tenants can appeal “above-market rents” which were “purely designed to force them out”.

+ Give tenants the right to request a pet in the property, which landlords “must consider and cannot unreasonably refuse”. In return, landlords would be able to require tenants purchase pet insurance to cover any property damage.

The bill’s second reading was on 23 October 2023. During second reading, the secretary of state for levelling up, housing and communities Michael Gove, announced that some of the reforms in the bill, such as abolishing Section evictions, would be delayed until the justice system was “fit for purpose”.

On the same day a carry-over motion for the bill was agreed. The bill’s committee stage is expected to take place in the forthcoming parliamentary session.

What policy measures could the government introduce?

Leasehold reform

Housing minister Rachel Maclean has confirmed that a bill to phase out some leaseholds in England and Wales will be in the speech.

Ministers have long promised to change the system, which has seen some homeowners face large maintenance bills and legal fees.

On a post on X, formerly Twitter, on 29 October 2023, Maclean said that the government would announce plans in the King’s Speech to “restore true home ownership to millions of people and end the reign of rip off freeholders and incompetent profiteering management companies”.

Rachel Maclean

Maclean also posted a link to an article in the Sunday Times, which reported that measures in the new “leasehold bill” would include all new houses in England and Wales having to be sold as freehold properties and all existing ground rents being capped at a “peppercorn” rate, with a consultation on the subject of ground rents being launched alongside the legislation.

It now looks like the bill is expected to ban leaseholds for new houses, and change the standard lease extension from 90 to 990 years.

But, frustratingly for many homeowners, is not expected to abolish leaseholds for new flats.

Nutrient neutrality rules: Housing developments

In August 2023, the government announced that it would be introducing amendments to the Levelling-up and Regeneration Bill 2022–23 to remove nutrient neutrality rules for housing developments. The government argued that these rules were “legacy EU laws” and were preventing 100,000 homes from being built.

Nutrient neutrality rules require new housing developments in certain areas to prove that they will not increase the amount of nutrient pollution in the water catchment if they are located near protected habitats that are already in an “unfavourable condition”.

The amendments would have made changes to the bill the Conservation of Habitats and Species Regulations 2017, including removing the requirement for planning authorities to consider nutrient loads in urban wastewater when making planning decisions and developing plans in areas currently affected by nutrient neutrality. This would have meant that local authorities could grant planning permission for development in these areas, even if it was linked to a wastewater treatment works or an alternative wastewater treatment system managed under the environmental permitting regime.

The amendments were introduced by the government during the bill’s report stage in the House of Lords in September 2023. However, several members of the House of Lords raised concerns about the impact of the amendments on the environment.

The proposed government amendments were subsequently defeated on division.

At the Conservative Party Conference last month, Michael Gove stated that he wanted the government to progress nutrient reforms through a standalone bill “at the first available opportunity”. But recent press reports have suggested that the government does not plan on announcing such reforms in the King’s Speech, as it had reportedly been advised that the “challenge of getting it through parliament unamended is too great”.

The government’s plans to remove nutrient neutrality rules were welcomed by housebuilding organisations. The executive chairman of the Home Builders Federation, Stewart Baseley, said that housebuilders were “keen to play a part in protecting rivers”, but argued that the current rules on nutrient neutrality were “exacerbating another national crisis, our shortage of homes”.[57] However, some environmental groups have criticised the government’s plans. Craig Bennett, the chief executive of The Wildlife Trusts, described the plans as a “licence from the government for the commercial housebuilding lobby to profit from the pollution of our rivers”.[58]

Decent homes standard in the private rented sector

The ‘decent homes standard’ is a technical standard for public housing introduced by the then Labour government in 2000. It sets a minimum acceptable standard for housing conditions in the social rented sector. The standard requires that all social rented homes must:

+meet the current statutory minimum standard for housing

+ be in a reasonable state of repair

+ have modern facilities and services

+ provide a reasonable degree of thermal comfort

In the levelling up white paper, published in February 2022, the government committed to consulting on a legally binding decent homes standard for the private rented sector in England.

Just over a year later, Gove published a written statement detailing the government’s plans to reform the private rented sector. Discussing the decent homes standard, he said that the government would bring forward legislation “at the earliest opportunity” to apply the standard in the private rented sector.

The government’s commitment to introduce a decent homes standard in the private rented sector has been welcomed by some housing organisations. The National Housing Federation stated that it was “important” for the private rented sector to have “a clear, modern and meaningful standards that reflect what residents would expect a decent home to be”.

However, the policy has been criticised by some landlord associations. The chief executive of the National Residential Landlords Association, Ben Beadle, said that standards in the private rented sector had been “improving”, and that the government’s plans “should focus on making it easier for private landlords, tenants and councils to understand what is expected of them by simplifying the almost 170 laws already affecting the sector”.

Other possible measures

Freehold estate management: In July 2023, the government outlined its intention to legislate to create a new statutory regime for freehold homeowners “based on the rights that leaseholders have”. The government stated that this would include giving homeowners the “right to challenge the reasonableness of estate management charges” at a first-tier tribunal, and the right to change the provider of management services by applying to the tribunal to appoint a new manager.

Housing for British citizens: In June 2023, the Telegraph reported that the government was considering introducing legislation in the King’s Speech that would require councils to prioritise housing for British citizens and permanent residents. Speaking to the Telegraph, a government source reportedly described social housing as a “finite source” and said that it was “only right” that the government “look[s] at what more we can do to ensure UK nationals are prioritised locally as homes become available”.

The King’s Speech is expected to begin today after Charles is seated on the throne around 11:30am.

 

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2 Comments

  1. AcornsRNuts

    “one ‘lifetime’ deposit which moves with the tenant” and just how will that work when there are claims against the deposit? Sunak really doesn’t have a clue, doees he?

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    1. jeremy1960

      None of the politicians need to have a clue, they get paid whatever happens, they leave with gold plated pensions and then end up becoming speakers or directors adding many thousands of pounds to their already bulging bank accounts. What really needs to happen is that anyone elected to local or central government needs to have work experience in running a large business, they need to be paid according to results and they should not be able to earn additional money off the back of their position.

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