The Kings Speech - A Conservative Start For Labour?

Hello readers,

I don’t doubt that you will have heard that this week was the King’s speech as Parliament was opened for the new term. This was the first of the new government and our first glimpse into how Labour might carry out their duties.

Before we get into the details and my thoughts, I came across a fascinating tradition that is still carried out today and that is how a member of the commons is taken ‘hostage’ at Buckingham palace during proceedings.

This was introduced by James I after the gunpowder plot to guarantee his safety and whilst nothing to do with property, I certainly found it interesting!

Ok, so into what the speech held (and didn’t hold). Let’s dive right into what it covered for landlords to be aware of:

• A resurrected, revised renters reform bill called the Renter’s Rights bill that promises to: “give greater rights and protections to people renting their homes, including ending 'no fault' evictions and reforming grounds for possession”
• A planning and infrastructure bill to “get Britain building”
• An English Devolution bill to give metro mayors and combined authorities new powers (potentially to introduce rent caps?)
• Draft legislation on reforming leasehold and commonhold

Whilst many landlords don’t trust Labour one bit, something Starmer said which I found interesting is how:

“We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.”

I find it interesting that there was at least one glaring omission and that was the change to bring all privately rented properties up to an EPC grade C by 2030. I am hoping that this was down to there not yet being a plan to fund the works and when it is introduced, a realistic funding scheme made available.

A couple of things we can expect to see in the renters right bill include:

• The ending of section 21 evictions whilst still allowing landlords grounds for possession
• An improvement of the rights for challenging rent increases
• Rights for tenants to request a pet that cannot be unreasonably refused (landlords could request insurance is in place for example)
• Preventing 'bidding wars'

I’ve been reading a lot of commentary in general and it seems that the speech was actually quite conservative, not hugely radical and with Starmer playing something of a long game I think.

There certainly is a challenge in funding major schemes and I would not be surprised if we see more in the Autumn budget.

Something that may cause a challenge for Labour’s approach, however, is the balance of parties in the House of Lords as the conservatives hold a large majority. Whilst the House of Lords cannot veto a bill, it could be something of a thorn in getting it royal ascent.

I wonder if there’s anything that stood out for you? I think we’re still building a picture and I will keep a close eye out. Particularly for the Renters Rights bill that will undoubtedly sway more in favour of tenants than landlords.

I'd be keen to hear your thoughts!

Hasan