Happy New Year from the Property Team

All here at Ware & Kay hope that you have had a happy New Year.

As you may be aware, a new year has brought a new government that is looking to bring forward a number of reforms. It remains to be seen how many of the suggested reforms mentioned in the Queen’s Speech will be implemented but there are a number of changes that will affect landlords of both commercial and residential property.

Business rates reform

The Government has suggested that it intends to conduct a ‘fundamental’ review of business rates. No timescales have been released yet but some of the key points mentioned are:

• Bringing forward the next business rates revaluation from 2022 to 2021 as well as moving the revaluations from a five-yearly to a three-yearly cycle.

• The Government describes itself as ‘committed’ to increasing the retail discount from one third to 50%.

Minimum energy efficiency standards for commercial property

Minimum standards are already in force, which stop landlords from letting their property if it has an energy efficiency rating below ‘E’ (subject to certain exceptions).

From 01 April 2023, landlords with a non-domestic property with an EPC rating of F or G will not be able to continue to let that property until works have been carried out to improve the energy efficiency rating to an E or above.

This may not be the end of the matter as the Government is currently consulting on reforms that mean landlords of non-domestic property will need to ensure a minimum energy efficiency rating of ‘B’ by 2030, provided that such measures prove cost-effective. Landlords with commercial properties should keep an eye on these developments.

Renters’ Reform Bill

The last parliament mooted legislation to increase the protection for domestic tenants in the residential sector. It is clear that the new Government intends to maintain this agenda.

The key measure is that the Government still intends to abolish ‘no fault’ evictions by removing section 21 Housing Act 1988, which currently allows landlords to evict certain tenants on two months’ notice without showing cause.

This will effectively mean that tenants will be able to stay as long as they wish, unless the landlord cans show some reason for retaking possession, such as rent arrears.

In return, the Government has stated its intention to provide new grounds for landlords to take possession as well as streamlining the court process. Details are awaited as to what form this will take or how this will be achieved.

There are other measures, including a ‘lifetime deposit’ that would in theory mean that tenants would not need to save for a new deposit every time they moved.

Further help for first-time buyers

The Government intends to consult on a new discount scheme of at least 30 percent for ‘local people and key workers’. The intention is that this discount will be applied in perpetuity via a covenant to prevent profit-taking.

It is unclear to what properties this discount will apply and further details are awaited.

Given that there is now a large Government majority, there is a reasonable chance that some of the above will now happen, although we will need to await the details.

For advice on any property dispute or any other enquiry please contact a member of our Litigation and Dispute Resolution team on York 01904 716000, Wetherby 01937 583210 or Malton 01653 692247.