What's happening in 2025?
Several significant property-related legislative changes are scheduled for implementation in England in 2025. Key developments include:
Stamp Duty Adjustments
Effective April 2025, the government will modify stamp duty thresholds:
• First-Time Buyers: The maximum property price eligible for First-Time Buyers Relief will decrease from £625,000 to £500,000.
• Second Homes: The surcharge on second home purchases will increase by two percentage points to 5%.
Renters' Rights Bill
The Renters' Rights Bill, expected to become law by summer 2025, introduces several reforms:
• Abolition of 'No-Fault' Evictions: Section 21 evictions will be eliminated, providing tenants with greater security.
• Rent Increase Limitations: Landlords will be permitted to raise rents no more than once per year, with a minimum two-month notice period.
• Prohibition of Discriminatory Practices: Landlords will be prohibited from refusing tenants based on benefits or familial status.
• Decent Homes Standard: Private rental properties must meet specific quality standards, with enforcement mechanisms in place.
Leasehold and Commonhold Reform
The government plans to publish a draft Leasehold and Commonhold Reform Bill in the second half of 2025, aiming to:
• Strengthen Leaseholders' Rights: Facilitate easier lease extensions and freehold purchases.
• Modernize Commonhold Framework: Revitalize commonhold ownership as an alternative to leasehold.
• Regulate Ground Rents: Implement regulations for existing leaseholders.
• Consult on New Leasehold Sales: Explore options to restrict the sale of new leasehold flats.
Compulsory Purchase Reforms
Reforms to compulsory purchase powers will empower councils to acquire land more efficiently for development:
• Valuation Changes: Local authorities can purchase land at values excluding 'hope value,' potentially reducing compensation to landowners.
Energy Efficiency Standards
The Future Homes and Buildings Standards, set to commence in 2025, will mandate:
• Enhanced Energy Efficiency: New homes must adhere to improved energy performance criteria.
These legislative changes are poised to significantly impact property ownership, rental practices, and development in England. Stakeholders should prepare accordingly to ensure compliance and adapt to the evolving legal landscape.
