Housing Market Legislation
New legislation can have an impact on the property market. New legislation can make it more attractive or less attractive to buy in the property market or to invest in the market.
Here are some key legal changes that may impact the property market in 2024:
* The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level for domestic private rented properties. Since 2020 landlords have been unable to let properties if they have an EPC rating below E unless they have a valid exemption in place.
Plans to reduce this to C as early as 2025 have recently been dropped. This change would have meant some landlords had to make costly improvements to their properties, and perhaps increase rents as a result. This development is likely to make buy-to-let investment in 2024 more attractive than it would otherwise have been.
* The Renters (Reform) Bill is currently working its way through Parliament. It will completely change the landlord-tenant relationship in England. Major changes include introducing a new form of tenancy, changing the rules on eviction including banning Section 21 so-called no fault evictions, and introducing new registration schemes for landlords.
If it becomes law in 2024 the Renters (Reform) Bill could make becoming a buy-to-let landlord more challenging than it is now.
* The Leasehold and Freehold Reform Bill is currently working its way through Parliament. It applies to England and Wales. This proposed new law will make it easier and cheaper for leaseholders to buy their freehold, increase standard lease extension terms to 990 years, provide greater transparency over service charges and allow more leaseholders to take over the management of their property.
If it becomes law the Leasehold and Freehold Reform Bill could offer something of a boost to the property market. It could make it easier to sell some leasehold properties, and make these kinds of properties more attractive to buyers.