Property: What’s in store for 2024
All of this may prompt a pick-me-up for deal activity in both the commercial and residential sectors. There will also be a number of regulatory changes to keep up with in 2024, but with a general election on the cards, making accurate predictions of what will happen in the sector and what the legislation will end up looking like is probably best avoided. What we can safely do is provide a rundown of some of the more significant developments in property law expected in 2024, with the finer details to be fought over in Parliament.
Leasehold and freehold reform
The Leasehold and Freehold Reform Bill will enable leaseholders to extend leases to up to 990 years, abolish marriage value and also limit ground rent. These changes will make it cheaper and easier for leaseholders to extend leases or buy the freehold or share of the freehold.
The Renters Reform Bill is likely to come into law this year, and it will make significant changes to the way in which landlords let properties to tenants. This is the one promising the abolition of so called “no fault” evictions, but the reforms have been delayed due to the lack of a framework for the courts to deal with the proposed new eviction process.
Ending of lower residential stamp duty
The increase of the residential nil-rate tax threshold from £125,000 to £250,000 will end on 31 March 2025. This means that buyers will go back to paying the full amount of stamp duty next year. This may result in an increase in transactions towards the end of 2024 and the beginning of 2025, before the lower rate ends.
The Building Safety Act 2022 brought in several measures intended to make buildings and residents safer, in light of the Grenfell tragedy. In October, a number of measures were brought into law, which now relate to all projects, not just high-risk buildings. The regime is complex and specialist advice should be sought when building or re-developing property.
Biodiversity net gain
Intended to ensure that development has a measurably positive impact, or “net gain” on biodiversity, developers must deliver a BNG of 10%. This means a development will result in a better quality natural habitat than there was before development. New BNG rules came into force for most new developments from January 2024. Draft regulations and government guidance were published at the beginning of December.
To find out more, contact Chris Piggott of get in touch with firstname.lastname@example.org.