Propertymark is urging the UK government to implement reforms that will make it more cost effective and simpler for people to buy and sell leasehold property.
In the King’s Speech on Wednesday 17 July, it was announced that “draft legislation will be published on leasehold and commonhold reform”.
Nathan Emerson, CEO at Propertymark, said: “Propertymark has long called for the process of buying and selling leasehold property to be reformed, and it is positive to see that the new UK government intends to provide leaseholders with more rights and protections over their homes, and that ground rents for current leaseholders will be regulated.
“However, key questions remain about the phasing out of leasehold on new flats, strengthening consumer protections through the competency of property management practices and ensuring that warranties and guarantees provided by home builders are consistent across the sector.”
The draft Leasehold and Commonhold Reform Bill proposes that the Law Commission’s recommendations to increase leaseholders’ fundamental rights should be enacted, with some of those points being enhancing leaseholders’ rights to extend their lease and buy their freehold (enfranchisement) and take over the freeholder’s building management functions (Right to Manage).
Other measures include reinvigorating commonhold by modernising the legal framework, restricting the sale of new leasehold flats, regulating ground rents for current leaseholders, ending the injustice of unfair costs, and fully implementing the Leasehold and Freehold Reform Act 2024 so that leaseholders can enjoy more rights, power and protections over their homes.
Once fully enacted, the Leasehold and Freehold Reform Act 2024 will introduce benefits for leaseholders such as relevant paperwork being issued by agents in a standardised format to make them simpler to understand, and leaseholders no longer having to pay their freeholder’s costs when issuing a claim.
Propertymark said it will continue to work with the new UK government on the draft Bill and “help ensure any final proposal is workable and delivered in a timely manner”.
