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Unlocking Property Freedom: 2024 Changes for Homeowners and Renters

Published by UK Property Accountants,
Posted Date: December 29, 2023 , Modified Date: April 19, 2024

2024 is poised to reshape the UK property sector landscape, driven by pivotal legislative changes announced in the recent King's Speech

Let's dive into two landmark bills, the Leasehold and Freehold Bill and the Renters (Reform) Bill, set to redefine the dynamics of homeownership and renting.

Property Freedom 2024

In a bold departure from the status quo, the Leasehold and Freehold Bill is set to revolutionise homeownership in the UK. The bill seeks to liberate future homeowners from the shackles of leasehold ownership for new properties, ensuring they not only own their homes but also the land underneath them, eradicating the burden of ground rent payments to freeholders.

Leasehold Shackles

Breaking the Leasehold Shackles

The ground-breaking move goes beyond mere ownership, as the bill also substantially increases the standard lease extension term. Leaps from 90 to an impressive 990 years for both houses and flats are coupled with a reduction of ground rent to a symbolic £0. This visionary change guarantees secure, ground rent-free ownership, sparing leaseholders the hassle and financial strain of frequent lease extensions.

Extending Lease Terms

Notably, the legislation takes a proactive approach to preventing the creation of new leasehold houses. This sets a precedent, ensuring that, except in exceptional circumstances, every new house in England and Wales will emerge as freehold from the outset.

Lease Variation and Lease Surrender

This article covers the taxes involved in changing or ending a lease. It explains how these changes can lead to Capital Gains Tax and outlines the tax treatment for both parties. 

The bill further streamlines the process for new homeowners by eliminating the two-year ownership prerequisite to benefit from these transformative changes.

Future-Proofing Homeownership

The Leasehold and Freehold Bill is not just a legal evolution; it's a stride toward future-proofing homeownership, providing a glimpse into a property landscape where freedom and ownership go hand in hand.

As the bill charts a course for a new era in property rights, it paves the way for a more accessible, secure, and streamlined experience for those aspiring to call a house their own.

Renters Reform Bill

In a significant stride towards transforming the private rental sector, the Renters (Reform) Bill underscores the government's dedication to bolstering tenant security and fostering a more equitable relationship between tenants and landlords.

Renters (Reform) Bill:

Strengthening Tenant Security

The Renters (Reform) Bill aligns with the government's commitment to enhancing the private rental sector. It introduces measures to provide greater security and higher-quality accommodation for renters, fostering a balanced relationship between tenants and landlords.

Swift Evictions and Fairer Policies

This bill gives landlords stronger powers to evict anti-social tenants and reduces the delay between serving notice and eviction. Notably, landlords gain the ability to evict tenants for breaches or damages in as little as two weeks, fostering a fair and efficient rental process.

Embracing Inclusivity and Flexibility

The legislation marks the end of blanket bans on pets and renting to tenants with benefits or children, fostering inclusivity in the rental market. Recognising the cyclical nature of the student market, the bill introduces a new ground for possession, ensuring landlords can guarantee possession annually for new tenants.

Property-Freedom Future

As 2024 approaches, these revolutionary property laws promise a future of enhanced freedom for homeowners and renters alike. From extending lease terms to fostering efficient eviction processes, the changes reflect a commitment to creating a fairer, more balanced property landscape in the UK.

Stay informed and embrace the evolving dynamics of property ownership and renting.

Need expert advice on leasehold and freehold properties?

Contact us today for efficient and hassle-free assistance.

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