Minister of State for Housing and Planning Matthew Pennycook has published a written statement on the government’s progress on leasehold reform, acknowledging the legislation passed in the washup ahead of the dissolution of the Conservative government has much secondary legislation required to move it forward.
Updating the house, Pennycook said Labour is committed to honour its manifesto commitments and ‘do what is necessary to finally bring the feudal leasehold system to an end.’ He was critical of the limited scope of the Leasehold and Freehold Reform Act in rendering the process of change ‘more challenging’ adding primary legislation was needed to address flaws which prevent certain provisions from operating as intended. He draw attention to section 49 of the Act which provides for an increase in the non-residential floorspace limit for right to manage claims from 25% to 50% which could result in new claims for the right to manage resulting in companies being set up only for the building’s existing freeholders to have total control over them; contrary to the intention.
The MP for Greenwich and Woolwich warned of the risk of acting with undue haste reiterating what Labour have previously said about not making the same mistakes as previously. l’ he goes on to say ‘take the time necessary to ensure the reforms we pass are fit for purpose.’
A series of consultations will review the Act’s provisions on service charges and legal costs, the valuations process for leasehold enfranchisement, and consumer protection provisions for the up to 1.75m residential freeholders on private and mixed-tenure housing estates subject to unfair charges.
And alongside tackling ‘unregulated and unaffordable ground rents’, ‘the disproportionate and draconian threat of forfeiture as a means of ensuring compliance with a lease agreement’ and protecting ‘leaseholders from abuse and poor service at the hands of unscrupulous managing agents’, Pennycook reiterates previous commitments to introducing regulation of managing agents to include mandatory professional qualifications, and basic standards within the sector.
Responding to the statement, a Council for Licensed Conveyancers spokesperson said
“The CLC warmly welcomes the government’s announcement today that it will be looking again at Lord Best’s report on the regulation of property agents. Professionalisation of managing agents and ideally regulation of the industry, can contribute very significantly to the transformation of home buying and selling, leading to a faster, more certain, more secure and less stressful conveyancing process. We look forward to next year’s consultation.”
Timothy Douglas, Head of Policy and Campaigns at estate agency body Propertymark added,
“Propertymark welcomes further reforms to leasehold to strengthen protections for consumers and make it easier for people to buy, sell and rent homes. It is encouraging that the Minister is looking again at Lord Best’s report and understands the value of qualifications for agents and professionalising the property sector. Propertymark looks forward to continuing to work with the UK Government to ensure these requirements are extended as widely as possible across the property sector.”
Natalie Chambers, Director of the Residential Freehold Association, said:
“We welcome the Government’s recognition of the complexities around implementing leasehold reform, as well as the serious flaws in the legislative approach taken by the previous government. We are also encouraged by the Government’s commitment to engage with industry. The Residential Freehold Association (RFA) – whose members collectively represent around one million leasehold properties – firmly believe in the important role played by responsible professional freeholders and look forward to working with the Government to deliver meaningful and workable reforms.”
The statement largely reflects comments at the recent Society of Licensed Conveyancers Conference at which co-CEO at The Leasehold Advisory Service (LEASE) Alice Bradley told delegates leasehold reform was ‘years. not month’ away
One Response
This government has known for a long time that they will be in power. They know the issues they know elderly people are being financially and emotionally abused in the latter part off there lives by companies such as FirstPort.
The situation requires emergency legislation not more consulting with people who have vested interests in keeping their income stream at a maximum. Elderly people’s lives are being wrecked whilst you take your time consulting!