King's Speech: 6 law reforms that could impact your finances
Long-awaited plans to phase out some leasehold properties have been confirmed in the King's Speech – along with proposals to increase consumer protection online.
The proposed reforms were announced by King Charles as he laid out the government's priorities for the year ahead at the State Opening of Parliament.
In total, 21 Bills were put forward in the speech at the House of Lords. Here, Which? unpacks the law changes that will impact your finances.
Leasehold reforms for new houses confirmed
The government has long pledged to put an end to the 'feudal' leasehold system in England and Wales, and measures confirmed in the King's Speech mark the start of that pledge being carried out.
Ministers are to ban leaseholds for new houses, and change the standard lease extension from 90 to 990 years.
The Bill, however, will not extend to leaseholds for new flats. It will only be for new houses.
It will also look to cap 'punitive' ground rents that leaseholders are charged, and new rules will be introduced to allow flat leaseholders to more easily buy their freehold.
In today's speech, the King said: 'My ministers will bring forward a Bill to reform the housing market by making it cheaper and easier for leaseholders to purchase their freehold and tackling the exploitation of millions of homeowners through punitive service charges.'
How does leasehold work?
If you buy a leasehold property, you have the right to live in the home for a set amount of years (specified on the lease), but you won't own the land it stands on.
The land is instead owned by the landlord, who is called the 'freeholder'. This means as a leaseholder, you can't make big changes to the property – and you normally pay ground rent to live there.
- Find out more: leasehold vs freehold – what's the difference?
Tighter controls on 'drip pricing'
The Digital Markets, Competition and Consumers Bill is another of the long-awaited reforms to be confirmed at the King's Speech.
It involves combating 'drip pricing' – when companies entice customers with a low price before adding extra fees at the checkout.
This has become widespread within digital markets. Examples include being hit with extra charges at the checkout for luggage or printing out passes with airlines, or finding out you have to pay a processing fee for buying concert tickets.
The Bill – which has been carried over from the last Parliamentary session – also aims to make it harder for firms to trap people in unwanted subscription contracts, take action against fake reviews, and increase competition between big tech firms.
Which? welcomes digital markets reform
Which? has long campaigned for stronger competition and consumer reforms to hand regulators tougher powers to clamp down on anti-competitive behaviour.
Rocio Concha, Which? director of policy and advocacy, said: 'Our competition and consumer protections are in desperate need of an upgrade, so it's good to see the government moving forward with the Digital Markets, Competition and Consumers Bill.
'However, efforts to increase competition in digital markets risk being undermined if the government bends to lobbying from tech giants. The government should resist calls that would let Big Tech weaponise the legal system to frustrate decisions by the DMU, and allow the regulator to focus on improving choice and lowering prices for consumers.'
- Find out more: how drip pricing hurts consumers
Tenant and landlord reforms
The long-awaited Renters Reform Bill will see a big shake-up in the rental system – yet it has been watered down.
The flagship proposal to outlaw no-fault evictions has been put on the backburner indefinitely despite being promised since 2019.
Other reforms are still included, such as the strengthening of powers to evict anti-social tenants, increased rights to keep pets, and further regulation of rent increases.
- Find out more: what's happening with the Renters Reform Bill?
Smoking and vaping crackdown
The Tobacco and Vapes Bill will see the introduction of the plan announced by the prime minister, Rishi Sunak, to phase out smoking.
It will ensure no child aged 14 or under can ever take up smoking, and the Bill will see the legal age to buy cigarettes rise by one year annually. In doing so, the government hopes to create a 'smoke-free generation'.
A new tax on vapes – likely to be similar to tobacco duty – is also to be considered by ministers who will look to ban the sale of 'child-friendly' vape flavours.
- Find out more: the vape debate explained
Crackdown on London pedicabs
King Charles announced a Bill to 'deal with the scourge' of unlicensed pedicabs in London.
The pedicabs – which ferry tourists around the capital – are a common sight in the city's hotspots, but many riders are thought to be unlicensed.
There have been cases of unsuspecting passengers being charged hundreds of pounds for short journeys.
A new Bill is set to enable Transport for London to introduce fare controls and a licensing regime for pedicabs, and bar them from congested areas.
Single rail fare cuts
Among other things, the Draft Rail Reform Bill looks to bring down the cost of single-fare tickets. Currently, train operators often charge nearly the same price for a single journey as they do for a return.
The Bill aims to combat this 'anomaly' by introducing a new single-leg pricing system.
However, the reforms are only a draft and are therefore unlikely to be passed as law in this Parliamentary session.
- Find out more: how to find cheap rail tickets
