Landlords Guide to The Kings Speech Update: Key Insights You Should Know

The government’s recent King's Speech outlined several proposed housing and property changes that could have long-term effects on landlords, leaseholders, developers, and the wider property market.

Here are the key points and what they could mean specifically for landlords.

1. Tourist Tax Discussions — What Could This Mean?

The government and some local authorities are continuing discussions around the idea of a “tourist tax” on short-term accommodation such as:

• Hotels

• Airbnb properties

• Holiday lets

This would usually involve an additional charge per night paid by visitors.

What’s the reasoning behind it?

The idea is that tourism creates additional pressure on:

• Public transport

• Cleaning services

• Local infrastructure

The tax would help local authorities fund those costs.

Could this reduce tourism?

Possibly slightly.

Some visitors may:

• choose cheaper destinations

• reduce the length of stays

However, in reality, small tourism charges are already common across many major European cities and generally do not have a major impact on tourism demand overall.

What this could mean for landlords

For landlords operating:

• Airbnb units

• serviced accommodation

• short-term lets

…it may slightly reduce margins or add additional administration requirements in the future.

However, strong-demand areas — particularly London — are likely to remain resilient overall.

2. Leasehold to Commonhold Reforms — A Major Long-Term Shift

One of the most significant proposed housing reforms is the continued move away from traditional leasehold structures and toward “commonhold” ownership.

What is changing?

Under the current leasehold system:

• flat owners own a lease

• but a separate freeholder often controls the building

Under commonhold:

• residents collectively own and manage the building themselves

Why is the government pushing this?

Leasehold has increasingly faced criticism due to:

• rising service charges

• escalating ground rents

• management disputes

• difficulties selling certain flats

Why this could be positive

The changes may improve:

• mortgageability

• buyer confidence

• resale potential

Particularly for flats in developments that have previously faced:

• cladding concerns

• management disputes

• legal uncertainty

Lenders generally prefer cleaner and more transparent ownership structures.

Potential downsides

The transition may create:

• legal complexity

• management disputes between residents

• additional responsibility for owners

It may also negatively affect:

• some freeholders

• companies reliant on leasehold income structures

  
  

3. Cladding Reforms — Better for Leaseholders, Tougher for Developers

Following the Grenfell Tower fire, the government continues to increase pressure on developers and manufacturers regarding unsafe cladding remediation.

What is happening?

The intention is increasingly to:

• protect leaseholders from remediation costs

• force developers and manufacturers to contribute toward repairs

Why does this matter

Many leaseholders have been effectively “trapped” because:

• flats became difficult to mortgage

• insurance costs increased

• buyers became cautious

Why this may improve the market

As remediation progresses, affected properties may become:

• easier to mortgage

• easier to sell

• more attractive to buyers

This could improve confidence in parts of the flat market that have struggled in recent years.

Potential wider impact

For developers and manufacturers, these changes could mean:

• increased legal exposure

• higher compliance costs

• reduced margins

This may eventually feed through into:

• more cautious development activity

• higher future build costs

What Does This Mean for Landlords Overall?

The wider direction of travel is becoming increasingly clear:

The property industry is becoming more regulated and more professionalised.

This means:

• compliance matters more

• documentation matters more

• systems matter more

For organised landlords and professional management structures, this may actually create opportunities as weaker and less compliant operators struggle to keep up with increasing regulation.

For self-managing landlords without strong systems in place, the environment is becoming steadily more complex.

Final Thoughts

The housing market continues to evolve rapidly, particularly around:

• compliance

• leasehold reform

• safety regulation

• landlord accountability

For landlords, staying informed and proactive is becoming increasingly important.

If you would like advice or support regarding:

• property management

• compliance

• maintenance coordination

• portfolio support

please feel free to contact the Anthony Lewis team.

Kind regards,

Anthony Lewis Property Services