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December 23, 2024
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The new 2024 property law affecting millions of homeowners gets one step closer


There are some key legislative changes set to come into force in 2024 with one significant change to the property sector which will affect millions of homeowners. In November 2023, King Charles III delivered the first King’s Speech in more than 70 years, with some new property bills announced.

In a bid to support the Bank of England in bringing down inflation towards the two percent target, the King said that the Conservative Party will continue to take action by introducing new laws. The King’s Speech featured 20 bills and one draft bill, including some that have been carried over from the last parliamentary session to complete their passage in the next.




One of the key bills in the property sector is the Leasehold and Freehold Reform Bill, which has this week concluded its clause-by-clause consideration in the House of Commons at the Committee stage. It is now awaiting a date to be reported back to the House of Commons in the Report stage.

READ MORE: Good news for mortgage holders as Bank of England freeze interest rates

Currently, if your property is a leasehold, you own the house but not the building or land it sits on, which means you pay ground rent to the freeholder. The proposed new law would see this form of homeownership banned, meaning anyone who buys a new home going forward will own the building as well as the land it sits on.

The new Bill is set to improve homeownership for millions of leaseholders in England and Wales by making it cheaper and easier for more leaseholders to extend their lease, buy their freehold, and takeover management of their building.

The new laws would increase the standard lease extension term from 90 years to 990 years for both houses and flats, with ground rent reduced to £0. This would ensure that leaseholders can enjoy secure, ground rent free ownership of their properties for years to come, without the hassle and expense of future lease extensions.

It would also fully ban the creation of new leasehold houses so that, other than in exceptional circumstances, every new house in England and Wales will be freehold from the outset. The bill would also remove the requirement for a new leaseholder to have owned their house or flat for two years before they can benefit from these changes.



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