With the election over here are a few key points from the Conservative's manifesto that might impact the property sector in 2020
Encourage long-term fixed rate mortgages with the aim to reduce the cost of deposits and facilitate home ownership for first-home buyers.
Proposals to extend the Help to Buy scheme from 2021 to 2023.
Continue their commitment to Right to Buy for council tenants and maintain the voluntary Right to Buy scheme agreed with housing associations.
Continue reforms to leasehold home ownership, with the possibility of a ban on the sale of new leasehold homes, restricting ground rents, and providing a means of redress for tenants.
In the lettings sector end “no fault” evictions by abolishing Section 21 landlord notices which typically gives tenants 2 months’ notice to leave before the end of a fixed term tenancy, or when a tenancy is rolling month to month. Read ARLA (of which Alexandre Boyes are members) comments here
. The Government's consultation period has now ended and they are currently considering the feedback - read the full report on their website here
Strengthen rights of possession for “good” landlords - this we suspect will be to expand the grounds on which a Landlord can seek possession of a property via a Section 8 notice.
Introduce “lifetime” deposits that move with the tenant - this is aimed at helping tenants moving between rental properties where you typically need to pay a new deposit to secure the new rental property before you have received your old deposit back from the previous Landlord / Agent.
Introduce a 3% surcharge on non-UK resident property buyers to help fund new housing programmes and initiatives to reduce homelessness.
Many of the leading industry bodies have been involved in consultations and lobbying on some of these points. Watch for our future articles for 2020 developments.