The year 2024 is poised to bring about significant changes to property law in England and Wales, with the introduction of reforms set to impact residential and commercial property owners, landlords, and tenants alike. In this article, we will explore some key developments expected this year.

Leasehold and Freehold Reform Bill

King Charles III’s announcement in November signalled the government’s intent to reform the procedures for enfranchisement and lease extension. The subsequent introduction of the Leasehold and Freehold Reform Bill to parliament aims to simplify and reduce the cost of enfranchisement and lease extensions for tenants.

Current legislation grants leaseholders the statutory right to extend their lease by 90 years at a peppercorn rent for a premium. The proposed changes give the tenant the right to extend their lease by 990 years and removes the two-year ownership requirement on the tenant.

The bill is also expected to include measures that require more transparency over service charges and a possible ban on the creation of new leasehold houses.

The timeline for the passage and implementation of this legislation remains uncertain at present.

BSA 2022 Implementation

The Building Safety Act 2022 has already brought much-needed reforms to the building safety regime. However, due to its size and complexity, the Act is being gradually implemented. Provisions related to high-risk residential flats and information storage for high-risk buildings are already in force. This year is expected to witness the implementation of provisions concerning the new New Homes Ombudsman and additional building safety measures.

As the industry adapts to the new building safety regime, an increase in litigation related to the Building Safety Act is anticipated.

Reform of security of tenure provisions for business tenancies

Commercial leases currently benefit from ‘security of tenure’ provisions, ensuring that a qualifying business tenancy does not automatically end upon the expiration of its term. Landlords can contract out of these provisions by following the procedures outlined in the Landlord and Tenant Act 1954. To contract out, the landlord must serve a warning notice on the tenant and the tenant must make either a declaration or a statutory declaration (if within 14 days of completion). In 2023 the Law Commission announced that there would be a consultation on the Landlord and Tenant Act 1954 which is due to start early this year.

Other expected changes include:

In summary, 2024 promises crucial property law reforms in England and Wales. From extended lease rights to heightened building safety measures, staying informed is essential for successfully navigating these upcoming changes.

 For further advice and assistance please contact our Commercial Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

Following on from the Hackitt review in the wake of the Grenfell Tower disaster in 2017, the government has made drastic changes to the building safety regime through the passing of the Building Safety Act 2022, Higher-Risk Buildings Regulations 2023, Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023 and the Building (Higher-Risk Buildings Procedures) Regulations (HBR) 2023.  This new legislation places a greater responsibility on developers, constructors, landlords, and management companies.

One of the recommendations from the Hackitt Review was that, for each building recognised as ‘high-risk’, there should be a ‘golden thread of information’ that would allow someone to understand the building, keep it safe and would contain the information required to show that the building was compliant with relevant building regulations at each stage of its construction and occupation. This information should also identify building safety risks and evidence how these risks are managed and mitigated. The main purpose of this new requirement is to ensure that the right people have the information required to ensure compliance with all relevant building regulations during construction and to enable building owners and managers to have easy access to evidence of any required risk assessments, safety procedures and risk management plans.

The obligation to maintain the ‘golden thread of information’ is placed on the ‘dutyholders’ and ‘accountable persons’. The BSA 2022 established the new dutyholder regime which places a general responsibility on ‘dutyholders’ and ‘accountable persons’ to plan, manage and monitor their work to ensure the building work complies with regulations.

The information must be stored in accordance with the ‘golden thread principals’ which were established in the July 2021 Building Regulations Advisory Committee (BRAC) Report and set out in the HBR 2023.  The principals require the information to be:

One of the major differences to the previous requirements for the storage of health and safety information contained in Construction (Design and Management) Regulations 2015, is the requirement for all information to be stored digitally and in the same place. The requirement for the information to be stored digitally may affect smaller contractors and developers disproportionately due to the fact that they will be less likely to have centralised digital storage systems than their larger national counterparts.

The requirement for a golden thread of information applies to existing high-risk buildings and the new regime will apply to the construction of new high-risk building from 1 October 2023. More details on what information must be stored can be found on the Health and Safety Executive Guidance note. 

Our Commercial Property team have experience in acting for developers and property investors from the acquisition of a site right up to and including the sale of the developed property/properties.

For further advice and assistance please contact our Commercial Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

Tenants who are not happy with how their Landlord is managing their building are potentially able to collectively force the Landlord to transfer their management functions to a special company set up by the tenants under the Commonhold and Leasehold Reform Act (CLRA) 2002 and subsequent regulations. This kind of company is known as a Right to Manage (RTM) Company. There is no need to prove wrongdoing or mismanagement on the part of the Landlord or current Management Company in order to force the transfer of their management functions.

The term ‘management functions’ includes but is not limited to:

The RTM provisions will only apply if the following conditions are met:

In order for a Tenant of a flat to be a qualifying tenant they must own the flat under a long lease i.e. one that was granted for a term greater than 21 years.

If the tenants meet the above criteria, they have the right to request the transfer of the management functions of their landlord to a RTM Company.

Our Bespoke and Commercial Property team, headed up by Jo Pusey, are able to advise on your eligibility to force the management functions to a RTM Company and draft and serve the appropriate notices. Our Corporate Department are able to assist you with the formation of the RTM Company.

For further advice and assistance please contact our Commercial Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk