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UK Government's Housing Overhaul: Key Reforms and Market Impacts

London Property - Home of Super Prime

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UK Government's Housing Overhaul: Key Reforms and Market Impacts

  1. Renters' Rights Bill: The UK government announces the Renters' Rights Bill, aiming to ban no-fault evictions, allow pets, and ensure landlords address structural issues. The bill is hailed as the biggest housing reform in 30 years, set to take effect in mid-2025.
  2. Leasehold Ground Rent: The Competition and Markets Authority is working to free leaseholders from escalating ground rent contracts. The government faces pressure from pension funds to prevent the abolition of ground rents, which could impact retirees' incomes.
  3. Real Estate Market Outlook 2025: CBRE predicts economic recovery in 2025 with increased property investments, driven by falling inflation and interest rate cuts. Key sectors like office, retail, rental housing, and data centers are expected to see significant growth.
  4. Luxury Property Market: The stalled sale of London’s most expensive home at Rutland Gate highlights challenges in the luxury property market, affected by high taxes and financing costs for foreign buyers.
  5. Insurance Fees for Leaseholders: The government proposes a new "fair and transparent" insurance fee to protect leaseholders from high charges. A consultation is open to gather public input for future legislation.

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