We are closely following the changing landscape in residential leasehold on our Essential Residential Hub.
We reported on the Law Commission's extensive recommendations on enfranchisement, right to manage and commonhold in our insight: Law Commission reports signal significant changes to home ownership.
The Law Commission made numerous far-reaching recommendations, (324 to be precise), for reforming enfranchisement, right to manage and adopting commonhold as the predominant tenure of home ownership. Clearly, a huge amount of Parliamentary and Government time would be involved in implementing the recommendations and their was speculation within the residential sector on the speed within which the Government would consider the proposals.
Robert Jenrick, the Secretary of State for Housing, Communities and Local Government, speaking at the RESI Convention this week, indicated that the Government will shortly be responding to the Law Commission's reports.
Whilst the global pandemic is posing many challenges for the Government, Jenrick has sent a clear signal that leasehold reform and a move towards commonhold remain high on the Government's agenda.
Those in the residential sector will be keeping a close eye on how the Government intends to take forward the Law Commission's recommendations and so will we!
Earlier this year the Law Commission published a number of reports setting out how we could make the process of enfranchisement simpler and easier, improve the position of leaseholders more generally and embed commonhold as a more established tenure. We will shortly be responding to this report – setting out the reform government will take forward and we intend to reform leasehold to cut unnecessary costs, uncertainty and complexity to make the process of enfranchisement as simple as possible for leaseholders. And to ensure that common hold is made a reality for more and more people. We’ll legislate to ban new leasehold homes at least, and reduce ground rents to zero.
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