LATEST NEWS & UPDATES
 

JANUARY 2024

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Leasehold Reform

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The Ground Rent Consultation

 

This has now closed

 

The Consultation sets out a series of options for how the Government could intervene to cap Ground Rent

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Five options are outlined:-

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• capping Ground Rents at a peppercorn

• setting a maximum financial value for Ground Rent

• capping Ground Rents at a percentage of the property value

• limiting Ground Rent to the original value when the Lease was agreed

• freezing Ground Rent at current levels

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The outcome of this Consultation remains to be seen

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The Leasehold and Freehold Reform Bill

 

The Bill has now passed the Committee Stage in the House of Commons and now moves on to the Report Stage

 

The Government has introduced amendments to the Bill which include in relation to:-

 

• The ability to introduce redress schemes to which a person who carries out estate management in respect of a dwelling in England is required to be a member of such scheme

• Sales Information Requests to Landlords and the charges for provision of information

• Sales Information Requests to Estate managers and the charges for provision of information

 

 

 

Amendments put forward by others include:-

 

• Abolition of the right to forfeiture in relation to a residential long Lease in instances where the Leaseholder is in breach of covenant

• A provision designed to ensure that Leases on new Flats include a requirement to establish and operate a resident’s management company responsible for all service charge matters, with each Leaseholder given a share

• A prohibition on Landlords claiming litigation costs from Leaseholders

• The removal of existing law which, amongst other things, allows a rentcharge owner to take possession of the Freehold property in instances where a Freehold homeowner has failed to pay a rentcharge

• The ability to establish a Right to Manage regime for Freeholders of residential property on private or mixed-use estates

• Regulation of property agents

• Giving the Secretary of State the power to bring “non qualifying” Leaseholders within the scope of the protections of the Building Safety Act 2022

• Giving the Secretary of State the power to bring buildings which are under 11 metres in height or have fewer than four storeys within the scope of the protections of the Building Safety Act 2022

 

 

One assumes that the amendments introduced by the Government are likely to remain in the Bill (in some form or another) but it remains to be seen the extent to which the amendments introduced by others will be accepted as the Bill makes its way through Parliament

 

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The Renters Reform Bill Bill

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This Bill Has been through the Committee Stage in the House of Commons and is now waiting the Report Stage

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In its current form, the Bill includes a provision which inserts a new paragraph into the Housing Act 1988 designed to make it clear that a long term residential Lease cannot be an assured tenancy

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Assuming this provision remains in the Bill when it is passed into law, then it will avoid the need for Leaseholders, when selling their property, to obtain a Deed of Variation to deal with this issue

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