Real Estate Bulletin - December 2024

Consultation: Reforms to the Energy Performance of Buildings regime

On 4th December 2024 the government launched a consultation on the Energy Performance of Buildings (EPB) framework. The consultation covers England and Wales and sets out the government’s vision for a reformed EPB regime.

We take a look at the proposals contained in the consultation here.

High Street Rental Auctions – non statutory guidance issued

On 2 December the government published non-statutory guidance to sit alongside the new High Street Rental Auction Process. The new regime allows local authorities in England to auction long term vacant commercial ‘high street’ properties to new tenants on short term tenancies of between one and five years and the guidance provides further government commentary on the process.

Consultation: Permitted insurance fees for landlords, freeholders and property managing agents

Following the recent update on the proposed timeframes for residential leasehold and freehold reforms on 2 December 2024 the government published a consultation on ‘permitted insurance fees for landlords, freeholders and property managing agents’.

The consultation is in connection with measures in the Leasehold and Freehold Reform Act 2024 which limit a landlord’s ability to charge for certain insurance costs connected with arranging or managing insurance and instead allows for a new permitted insurance payment (which is separate from the insurance premium). The consultation seeks views on the implementation of these measures.

The consultation is open until 24 February 2025.

December 2024 Building Safety Update

On 2 December 2024 the UK Government announced a detailed "Remediation Acceleration Plan" to respond to the perceived slow pace of remediation to buildings with unsafe cladding, and to protect and support residents and leaseholders further in such buildings. Steps include:

• significant legislative proposals to ensure landlords etc identify and remediate relevant buildings promptly, including in relation to properties 11m or more in height;
• the introduction of a voluntary "joint action plan" under which developers who have signed up to the Developer Remediation Contract (DRC) / the Responsible Actors' Scheme commit to taking certain steps within more concrete time frames;
• further measures to improve leaseholder/resident experience of remediation and to ensure leaseholders are protected from remediation cost.

The announcement also provides a brief update on the implementation of the Building Safety Levy, and the Government's intentions in relation to building Fund recovery under the DRC.

It remains to be seen how the proposals will be implemented in practice, and the Government intends to make a further announcement about the plan in Summer 2025.

We look at this in more detail here.

The National Planning Policy Framework

Following a consultation earlier this year, on the 12 December 2024 the government published a response to that consultation together with a revised National Planning Policy Framework (NPPF). A related press release can be found here.

Wishing you a very happy Christmas and New Year.