On the horizon: new government, familiar themes

In this quarterly column, Bill Chandler previews some of the most significant legal developments expected in the coming weeks and months. New government, familiar themes The main focus in the coming months will undoubtedly be on the progress of the new government’s legislative programme affecting real estate, which includes some familiar themes from the previous administration. Key Bills to look out for, as trailed in the King’s Speech on 17 July 2024, include: Renters’ Rights Bill The earlier-than-expected general election wiped out the Renters (Reform) Bill, but the abolition of section 21 “no-fault” eviction is back on the table and is intended to be achieved in England through a new Renters’ Rights Bill. This Bill will also introduce wider grounds of possession, as well as strengthening tenants’ rights and protections, including the right to request a pet. Leasehold and Commonhold Reform Bill The latest attempt to reinvigorate commonhold and ultimately bring leasehold to an end. It will also regulate ground rents under existing long residential leases (an ambition of the previous government that never made it into the Leasehold and Freehold Reform Act 2024 as planned) and end forfeiture for residential leaseholders. Planning and Infrastructure Bill Intended to speed up and streamline the planning process, with particular emphasis on building more homes and accelerating the delivery of major infrastructure projects. It will also reform the compulsory purchase compensation rules. It is hoped the opportunity will also be taken to remove the current trap whereby a long residential lease can become an assured shorthold tenancy if the ground rent breaches the relevant threshold (£1,000 per annum in London and £250 per annum elsewhere). A simple clause to achieve this fell with the Renters (Reform) Bill, although the issue might resolve itself if ground rents are capped at or below those thresholds. Unfinished business What will happen with the previous administration’s other unfinished business? The new government has committed to fully implementing the Leasehold and Freehold Reform Act 2024, the last Act passed prior to the election. Provisions not yet implemented include banning the sale of new houses on a leasehold basis, increasing statutory lease extensions for houses and flats to 990 years, and making it easier for residential leaseholders to enfranchise and to challenge service charges. We should therefore expect to see the necessary commencement regulations in due course. The outstanding parts of the Levelling-up and Regeneration Act 2023 face a more uncertain future. The first high street rental auctions should have been taking place about now, but will this particular initiative now quietly fade away? And what about the recent consultation regarding “contractual controls on land”, which would have seen a new register of options and other similar agreements by 2026? We also await the new government’s proposals around energy efficiency of buildings. The future trajectory of the Minimum Energy Efficiency Standard for commercial property in particular has already been in limbo for far too long. Coming this autumn The new chancellor’s warning of difficult decisions ahead has heightened the inevitable interest in her first Budget, which takes place on Wednesday 30 October 2024. Having pledged not to increase income tax or national insurance, early predictions suggest that capital gains tax, inheritance tax and pensions could be in the firing line. From 1 October 2024, HM Land Registry will no longer accept certified copy documents with applications for first registration of unregistered land. While it may sound like a retrograde step to go back to having to submit original title deeds, it seems like a case of “our scanners are better than yours”. And, with the proportion of registered land in England and Wales now nudging 90% (and much of the remainder comprising swathes of remote countryside), first registration applications are increasingly rare beasts anyway. We should also anticipate a final decision from the Welsh government on whether to abolish multiple dwellings relief for land transaction tax in Wales (mirroring the abolition of MDR for stamp duty land tax in England on 1 June 2024) and whether to abolish the rule that the purchase of six or more dwellings is taxed at non-residential rates (which would go further than the recent changes to SDLT). The Welsh government published its summary of responses to the recent consultation on 17 July 2024, but set no timescale for a final decision. Finally, the Law Commission website still promises that its long-awaited consultation paper on reforming business tenancies will be published in “Autumn 2024”. Beyond the horizon Looking further ahead: Building Safety Act 2022 The appeal in Triathlon Homes LLP v Stratford Village Development Partnership and others [2024] UKFTT 26 (PC); [2024] PLSCS 16 was passed to case management and bundles requested in June. This important appeal concerning remediation contribution orders under the 2022 Act is scheduled to be heard by the Court of Appeal by 6 May 2025. SDLT The temporarily extended nil-rate band of £250,000 for residential property is due to revert to £125,000 after 31 March 2025, subject to anything said in the forthcoming Budget. Law Society Adoption of the controversial new 5th edition of the TA6 property information form has been delayed until January 2025, to facilitate consultation with the conveyancing profession. We can also expect to hear further from the Law Society on their proposed new code for signing and exchanging property contracts, and with the promised practice note on climate risk and conveyancing. Bill Chandler is a professional support lawyer at Hill Dickinson LLP Photo © Kellie Churchman/Pexels