A leading leasehold reform campaigner is calling on the government to urgently implement the remaining provisions of the Leasehold and Freehold Reform Act, passed under the previous Conservative administration.
Mark Chick, director of the Association of Leasehold Enfranchisement Practitioners (ALEP), has written an open letter to newly appointed Housing Secretary Steve Reed, urging him to prioritise the full rollout of the legislation.
In his letter, Chick emphasised that the ongoing Labour Party Conference provides a timely opportunity to demonstrate the new government’s commitment to improving conditions for leaseholders across the country. He called for clear and decisive action to ensure the law’s remaining elements are enacted without further delay.
Chick’s letter in full:
Dear Secretary of State
On behalf of ALEP (the Association of Leasehold Enfranchisement Practitioners), we would like to congratulate you on your new role at this pivotal moment for land tenure and leasehold reform.
The leasehold enfranchisement sector is encouraged by the government’s commitment to bring about necessary change. With Matthew Pennycook having set an ambitious timetable for reform in his November 2024 Ministerial Statement, many of us hope the forthcoming Labour Party Conference will provide the opportunity to confirm next steps and offer clarity for homeowners and practitioners alike.
Implementing the Leasehold and Freehold Reform Act 2024
One of the most pressing concerns is the status of the Leasehold and Freehold Reform Act 2024 (LAFRA). While this significant piece of legislation was passed by the previous government, much of it remains unimplemented. The government has promised to “act quickly to provide homeowners with greater rights, powers and protections” – but progress has stalled.
Please could you confirm when the results of the previous government’s consultation on ground rents will be published, if at all? If they are to be released, how does the government intend to respond to their findings and what is the likely timetable? Clarity is also urgently needed on the secondary legislation required to bring the LAFRA fully into force.
This uncertainty is having real-world consequences. In a recent ALEP survey, more than 80 per cent of members reported stalled lease extensions, falling transaction volumes and increased costs – outcomes that were never the intention of reform and are creating unnecessary complexity for consumers.
Valuation reform and unintended market impacts
Another area of concern is valuation. Potential changes to deferment and capitalisation rates could inadvertently increase, rather than reduce, the cost of lease extensions. Yet the secondary legislation to implement the government’s proposed valuation methodology has not been introduced. Until it is, both practitioners and leaseholders face uncertainty and risk.
Looking ahead to commonhold reform
We also await the publication of a Leasehold and Commonhold Reform Bill, announced in the King’s Speech in July 2024. Its promise to create a robust framework for commonhold – and in doing so to end the sale of new leasehold flats – is of profound importance to the market. Can you offer any indication of when the Bill is likely to have its First Reading? Reducing uncertainty now would allow developers, lenders and homeowners to plan with confidence.
Unlocking stalled transactions and supporting growth
As you will know, uncertainty in the leasehold enfranchisement sector affects the wider property market. Delays and legal ambiguity discourage investment and slow transactions, which in turn impede the government’s wider economic growth agenda.
ALEP has worked constructively with government before to shape workable, consumer-focused reform. We would be pleased to continue that collaboration, sharing practical insight from across the sector to ensure legislation achieves its intended outcomes and avoids unintended disruption.
Yours sincerely
Mark Chick
Director, ALEP
