Housing & Regeneration Article
22 November, 2023
We have seen the Leasehold Reform (Ground Rents) Act 2022 come into force, restricting ground rents in new long leases (unless excepted) to a peppercorn rent. But what of the other leasehold reforms we have been hearing of that seem to be making slow progress?
Within the King's Speech on 7 November 2023, King Charles III addressed the proposed reforms, saying:
"My Ministers will bring forward a bill to reform the housing market by making it cheaper and easier for leaseholders to purchase their freehold…."
The accompanying Briefing Note provides the headlines on how the proposed Leasehold and Freehold Reform Bill intends to deliver the Government's manifesto commitments on leasehold reform. It aims to bring fairness in the housing market "by making it cheaper and easier for more leaseholders to extend their lease, buy their freehold, and take over management of their building".
The proposals include:
We suspect consultation on capping existing ground rents will highly debated and contentious. Depending on the outcome of such consultation however, it could form part of the Bill.
It remains to be seen whether there is time for these proposals to translate into the statute books under this current Government. We also note what has not been said in the Briefing Note. Law Commission recommendations also included the scrapping of marriage value and banning leasehold ownership not only on new houses but also flats, but there is no suggestion that commonhold is going to be pushed for new blocks meaning leasehold will remain the default tenure for flats.
There is a lot of finer detail which remains to be seen and we will continue to track progress of the proposed reforms with interest.
For more information contact Emily Jordan in our Housing & Regeneration department via email or phone on 0333 207 1130. Alternatively send any question through to Forbes Solicitors via our online Contact Form.
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