Hopes have been expressed that the King’s Speech tomorrow will bring much-need clarity to the housing market.

The market has been suffering due to a lack of clarity on issues such leasehold reform, which has had a knock-on effect on sales, according to Jeremy Leaf, a north London estate agent and a former RICS residential chairman.

He told The Neg: “We would certainly welcome some clarity on leasehold and commonhold reform because more than anything we want to see more activity in the market.

“There is no doubt that the lack of clarity and uncertainty to date is preventing sales.

King’s Speech

King Charles will deliver the King’s Speech tomorrow, setting out the Government’s legislative programme for the coming Parliamentary session.

The speech will outline planned legislation across key policy areas, which is expected to include housing – although the actual content will only be revealed on the day.

The BBC has suggested that two housing-related bills are likely to be included. These are the Leasehold and Commonhold Reform Bill and the Building Safety Remediation Bill.

There is no doubt that the lack of clarity and uncertainty to date is preventing sales.”

The Leasehold and Commonhold Reform Bill is already progressing through the legislative process, and is expected to expand leaseholders’ rights to extend leases and purchase freeholds in England and Wales.

It also plans to cap ground rents at £250 a year, moving to a peppercorn rent after 40 years, following draft legislation published earlier this year.

At the same, the Building Safety Remediation Bill is aimed at strengthening building safety standards following the 2017 Grenfell Tower fire.

Unsellable flats

Leaf added: “If people can’t sell their flats or are nervous about buying because of that, it is going to have an impact on job and social mobility which is so vital to economic and housing market activity, particularly now, when there is so much nervousness around.

“But of course we appreciate this is a hugely difficult issue to reconcile between that desire to extend leases and purchase freeholds, cap ground rents and introduce commonhold – all of which have much merit – against the importance of ensuring the freeholders are happy to stay in the market and carry out some of the health and safety and improvement works which sometimes only professional freeholders can deliver.

“That raises the other question which is control over management and more transparency over service charges.

“Of course, leaseholders want to seek that clarity but many would be reluctant to take on the responsibility of freeholders and managing agents for that work given the financial consequences which could be significant if things don’t go according to plan.”

Building safety

He went on to say that is it essential to “bring about change in a gradual way, not too quick or too slow”.

“Too quick often results in too much upheaval and disruption which can create other challenges,” he says.

Regarding building safety, he explains that similar factors apply. “It is absolutely fundamental that building work is carried out appropriately to reduce the risk of problems occurring in the wake of the Grenfell disaster,” he said.

“However, the delay in implementing the changes required is compromising market activity and in some cases preventing new work going ahead at a time when there are so many other reasons for builders and developers not to put spades in the ground.”