“Momentous” leasehold reform bill introduced to Parliament

The “Leasehold and Freehold Reform Bill” is set to be introduced to Parliament today (27th November), just two weeks after the Kings Speech. The Bill could see new leasehold homes banned in England and Wales 

Reformers have described its introduction as “momentous” with the bill set to make it easier for leaseholders to purchase their freehold and remove the current requirement to have owned the leasehold for 2 years before extending the lease; and make it easier for leasehold information to be obtained to make sales easier, including greater transparency over service charges. Standard lease terms are proposed to be increased to 990 years for houses and flats, with greater powers for freeholders to take over the management of their property should they wish. The Bill will also “rebalance the legal costs regime and remove barriers for leaseholders to challenge their landlords’ unreasonable charges at Tribunal.”

There are extensive ambitions in the Bill which also includes provisions for

• Making it cheaper for leaseholders to exercise their enfranchisement rights as they will no longer have to pay their freeholder’s costs when making a claim.
• Scrapping the presumption that leaseholders pay their freeholders’ legal costs when challenging poor practice that currently acts as a deterrent when leaseholders want to challenge their service charges.

it is anticipated the Bill will also make amendments to the Building Safety Act to re-enforce the “polluter pays” message for enfranchised buildings.

The Bill has been described by government as “the most significant reforms to the leasehold system for a generation. Ahead of the Bill’s introduction, the Housing Secretary, Michael Gove said:

“People work hard to own a home. But for far too long too many have been denied the full benefits of ownership through the unfair and outdated leasehold system. That’s why liberating leaseholders forms a vital part of the Government’s Long-Term Plan for Housing.

“So today marks a landmark moment for millions of leaseholders across the country, as we unveil laws to deliver significant new rights and protections, slash unfair costs and crack down on exploitation.”

The National Leasehold Campaign (NLC) has been a vocal advocate for change, with founder Katie Kendrick commenting on the speed of the bill’s introduction so soon after the King’s Speech;

“To see this bill introduced to parliament is momentous. NLC (with our 28,000 members) and The Leasehold Knowledge Partnership have worked relentlessly to get to this point.

“The fact this Bill is being introduced so swiftly after the King’s Speech is hugely positive and demonstrates that the Government recognised how important and urgently needed leasehold reform is. We hope all those involved work together to ensure there is enough time for the Bill to receive Royal Assent before the next election”.

Jo Darbyshire, Co-Founder of NLC added

“As always, the devil will be in the detail of the Bill, but this is a huge step forward for leaseholders. I hope this is the beginning of the end of this feudal system.’

Cath William, Co-Founder of NLC further added

“Leasehold is a cross-party issue. Now more than ever we need our elected politicians and peers to work together to ensure this bill succeeds. Many existing leaseholders remain trapped, and this Bill will be life changing for them”.