LATEST NEWS & UPDATES
 

JUNE 2024

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Leasehold Reform

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With electioneering in full swing, June will be a quiet month for any action on Leasehold Reform

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Now the dust has settled on the Leasehold and Freehold Reform Act 2024, which made it on to the Statute Book just before Parliament was dissolved, commentators are suggesting:-

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• it could be 2025 or 2026 before all of the Act's provisions come into force (i.e. it will take that long for all of the Regulations/Secondary Legislation to be dealt with) and

• as regards to the ending of Marriage Value for Statutory Extensions of Leases having less than 80 years remaining of their Lease term, it is almost inevitable that a case will be brought, on behalf of Landlords, under Human Rights legislation 

 

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What do the main Party's Manifestos say about Leasehold Reform?

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Conservatives

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Complete the process of Leasehold Reform by building upon the provisions of the Leasehold and Freehold Reform Act 2024 by:

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• initially capping Ground Rents at £250 per annum, but ultimately, over time, to reduce them to a peppercorn

• stop the misuse of Forfeiture (i.e. the ability of a Landlord to take the property back due to non-payment of Ground Rent or the Leaseholder being in breach of covenant)

• make it easier to take up Commonhold (i.e. the 'Freehold' ownership of Flats), in place of Leasehold

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Labour

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• end Leasehold by making it easier for Leaseholders to buy their Freehold and take over the management of their building

• ban new-build Flats from being sold Leasehold

• make Commonhold the default tenure

• tackle unaffordable Ground Rents (but no detail is given as to how this will actually be done)

• ban 'Fleecehold' estates (private housing developments where residents pay a service charge)

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Liberal Democrats

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• abolish residential Leasehold properties

• cap Ground Rents to a nominal fee

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