Propertymark is calling on the UK Government to make it more cost-effective and simpler for people to buy and sell leasehold properties following the King’s Speech on Wednesday, 17th July.
The King announced that “draft legislation will be published on leasehold and commonhold reform.”
The proposed Leasehold and Commonhold Reform Bill aims to enact the Law Commission’s recommendations to enhance leaseholders’ fundamental rights. Key points include extending leaseholders’ rights to extend their lease, buy their freehold (enfranchisement), and take over the freeholder’s building management functions (Right to Manage).
Additional measures include modernising the legal framework for commonhold, restricting the sale of new leasehold flats, regulating ground rents for current leaseholders, ending unfair costs, and fully implementing the Leasehold and Freehold Reform Act 2024. This act aims to provide leaseholders with more rights, power, and protections over their homes.
The Leasehold and Freehold Reform Act 2024, once fully enacted, will offer benefits such as standardised paperwork from agents to simplify understanding and removing the requirement for leaseholders to cover their freeholder’s costs when issuing a claim.
Propertymark will work with the new government on the draft bill to ensure the final proposal is workable and delivered promptly.
Nathan Emerson, CEO of 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.”
