Industry bodies welcome leasehold reform and remediation pledges but warn of viability concerns
The King's Speech has prompted a divided response from the property industry: leasehold reform and cladding remediation measures have been welcomed, but trade bodies warn that without bolder action to address viability and stimulate investment, construction will remain at a standstill and housing delivery will stall.
The King's Speech, delivered as part of the State Opening of Parliament on Wednesday, included three housing-related legislative proposals: a Commonhold and Leasehold Reform Bill, a Social Housing Renewal Bill, and a Remediation Bill targeting unsafe building cladding.
The Commonhold and Leasehold Reform Bill would ban leasehold for new flats in England and Wales and cap ground rents at £250 per year. The Social Housing Renewal Bill would exempt newly built social homes in England from Right to Buy for 35 years and introduce protections for social tenants who are victims of domestic abuse. The Remediation Bill would give the government powers to require construction product manufacturers to contribute to the cost of removing unsafe cladding.
Propertymark, the professional body for property agents, broadly welcomed the leasehold proposals while urging swift implementation.
"We welcome the UK government's continued focus on leasehold reform as we support action to address longstanding issues within the leasehold system, including excessive ground rents, unfair charges and greater transparency for consumers," said Timothy Douglas (pictured right), head of policy and campaigns at Propertymark. "We now need to see these reforms progress at pace, with clear timelines and delivery, to provide certainty and confidence for consumers and the wider housing sector.
"We acknowledge the government's ambition to make commonhold the default tenure for new flats and to strengthen leaseholder rights. However, reform must be carefully phased to avoid market disruption and ensure existing leaseholders, property agents, and developers can transition effectively to any new system."
Douglas also addressed the cladding remediation measures and the broader economic context for housing. "It is positive to see plans to accelerate remediation works and strengthen accountability for unsafe buildings," he said. "Leaseholders and residents have faced unacceptable delays and uncertainty for too long.
"The UK government must ensure remediation funding, enforcement powers and clear legal responsibilities are implemented quickly so that affected residents are protected, and confidence can return to the housing market."
Douglas added that housing reform must be accompanied by reductions in property taxation to ease affordability and reduce cost pressures on landlords.
Real Estate:UK, which represents institutional investors in property, offered a more cautious assessment.
"The real estate industry is facing numerous significant headwinds, and construction is at a standstill across most of the country because it is not viable to build," said Melanie Leech (pictured right), interim chief executive of Real Estate:UK.
"In these circumstances, while the UK remains a preferred destination for both domestic and global capital, investors are unwilling to commit new funds without greater economic and political stability including clear signals from the government that they will take the necessary steps to bridge the viability gap, reduce the costs of development and deliver on the promise that the UK will 'build, build, build'.
"Sadly, a combination of last week's local election results changing the landscape and bringing uncertainty in many areas, and the ongoing speculation about leadership, means that the reverse is true."
Leech acknowledged some positive elements in the speech, particularly the intention to accelerate grid connections, but said the government had failed to set out the bold vision for economic and social renewal needed to unlock investment.
"Indeed, investors may be further discouraged by the focus on measures such as leasehold reform and retentions within the construction sector," she said.
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