By Paul Fairlamb, Associate Director, youngsRPS
As the UK adjusts to a Labour-led government under Keir Starmer, significant reforms in planning, energy, and leasehold laws are set to reshape the commercial and residential investment property market.
Labour’s manifesto outlines ambitious goals to address sustainability, housing supply, and fairer leasing structures, all of which will impact developers, landlords, and investors. Forty government bills were announced in the King’s Speech, but how do these stack up against Labour’s proposed changes?
Planning Law Reforms:
Unlocking Development Potential
One of the most transformative elements of the Government’s policy is the overhaul of planning laws, aimed at streamlining the process and facilitating the development of commercial and residential space. For property owners and investors, this could unlock new opportunities on previously landlocked or under utilised sites.
The Government’s focus on affordable housing may pressure commercial developers to offer mixed-use developments or incorporate affordable housing in exchange for planning permission.
The Planning and Infrastructure Bill underscores the government’s commitment to removing bottlenecks and accelerating key infrastructure projects. The English Devolution Bill will also empower local leaders to manage local growth. While these changes may expedite projects, they could also introduce stricter sustainability standards, requiring developers to integrate green infrastructure and meet environmental targets.
Balancing growth with environmental responsibility will be central to future planning reforms.
Energy Law:
The Push for Green Commercial Spaces
For commercial property owners, this could mean tougher regulations to improve energy performance. Minimum Energy Performance Certificate (EPC) standards are expected to tighten, which could push poorly performing properties off the market unless retrofitted to meet new standards.
The King’s Speech referenced the Great British Energy Bill, which will solidify the legal framework for advancing clean energy and reducing carbon emissions by 2030. While initial compliance costs could be seen as burdensome, the opportunities for investors are substantial. Developers who prioritise sustainability could benefit from governmentbacked financing options and attract tenants aligned with environmental, social, and governance (ESG) goals.
Renters’ Rights: Fairer Deals for Residential Tenants and Landlords
The Renters Reform Bill, carried over from the previous parliament, focuses on tenant protection. One key reform is the abolition of “no-fault” Section 21 evictions, making it harder for landlords to regain possession without specific reasons. The bill also introduces stricter regulations on rent increases and mandates higher health and safety standards for properties. For investor landlords with residential portfolios, these changes could lead to greater compliance obligations, but they also offer opportunities to retain tenants and enhance reputations for providing secure, high-quality rental space.
Leasehold Law Reforms: Transforming Traditional Lease Structures
One of the most headline-grabbing promises from the new Government is the reform of leasehold laws. The Freehold and Leasehold Bill, and Leasehold and Commonhold Reform Act, aim to dismantle the current leasehold system, making it fairer for tenants. For residential property investors with long-term lease agreements, this could represent a seismic shift.
The move toward commonhold ownership, where tenants share ownership of the building, may reduce the control residential landlords exert over multi-unit properties. While this might be challenging for landlords accustomed to guaranteed lease income, developers and investors could find new opportunities by redeveloping properties under more equitable ownership structures, appealing to businesses seeking long-term stability without the restrictions of traditional lease agreements.
Challenges and Opportunities for Investor Landowners and Developers
The property industry faces an evolving landscape under the new Government, with significant implications for property investors and developers. Adapting to tighter energy laws and new leasehold structures, while navigating stricter planning regulations, will be key challenges.
However, the opportunities are equally significant. The Government’s commitment to infrastructure development, regional economic growth, and green energy investment creates fertile ground for forwardthinking developers and landlords. Those willing to embrace new standards can expect improved tenant relationships, long-term cost savings, and increased demand for sustainable, energy-efficient spaces.
At youngsRPS, we are closely monitoring these developments and advising clients on how best to navigate this period of transition. Of course we do not have any great detail on these policies yet and it will be interesting to see which of the government’s proposals make it into law and if they will bring about positive change to the market. As the market evolves, proactive planning and a focus on sustainability will be essential to future success.
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