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Friday, July 19, 2024

Looking ahead: Real estate considerations for 2024

As we embrace the new year, the real estate industry stands on the precipice of a dynamic and
eventful twelve months ahead.

In this article, we delve into several key considerations and forecasts
for the property sector in 2024, with a particular focus on property litigation predictions.

The year ahead promises to be a transformative one for the real estate landscape, with various legislative
changes and technological advancements poised to shape the industry’s trajectory.


Renters (Reform) Bill

Reforms proposed by the Renters (Reform) Bill was presented during the November 2023 King’s
Speech. While the bill included the prospective elimination of “no-fault evictions” (section 21
notices), it is improbable that this change will materialise this year.

The delay stems from the need to enact the bill, followed by a transitional period for existing tenancies. Additionally, this reform awaits improvements in the court process. Nevertheless, we can still anticipate other bill-driven changes, such as the establishment of a new ground for possession to facilitate landlords of student
housing in securing possession annually for new tenant groups.


Landlord and Tenant Act 1954 consultation

In early 2023, the Law Commission initiated a consultation on the Landlord and Tenant Act 1954, a
pivotal piece of legislation concerning commercial properties. A central question raised is whether
security of tenure should persist for commercial tenants. While some argue that its removal would
allow parties to contract for their protection, this approach may disadvantage smaller tenants who
lack robust negotiating positions. Initially scheduled for publication last month, the consultation
results are now expected at the beginning of this year, accompanied by a comprehensive review of
the Act.


Residential long leasehold properties

The Leasehold and Freehold Bill aims to overhaul the housing market by simplifying and reducing
costs for leaseholders seeking to purchase their freehold and addressing punitive service charges.
The draft legislation proposes extending the standard lease from 90 to 990 years and capping
ground rent at £0, eliminating the 2-year ownership requirement. Although in its early stages, we
can anticipate several developments in 2024 related to this legislation.

Technology

In the ever-evolving landscape, 2024 may witness increased tech adoption. Within the landlord-
tenant relationship, there may be a growing demand for user-friendly, streamlined processes.
Tenant apps, allowing rent payment, repair requests, and inquiries within a single interface without
the need for phone calls, could gain traction, bolstering landlord-tenant interactions. Furthermore,
the year may usher in heightened utilisation of artificial intelligence (AI) in real estate, automating
routine tasks and minimising tenant-related delays.

Conclusion

In summary, 2024 is set to be a transformative and dynamic year for the real estate industry. The
year holds promise for significant legislative changes, increased lease flexibility, evolving tenant
preferences, and a notable surge in technology integration. As we navigate this evolving landscape,
it is crucial for industry stakeholders to stay informed and adapt to the emerging trends and
developments.

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