UK GVT Department for Levelling Up, Housing and Communities issued summary of responses, UK GVT response to proposals to reform leasehold/commonhold systems.
Also issued letter to Law Commission with thanks for its work on the subject and confirmed the introduction of the Leasehold and Freehold Reform Billto parliament.
Follows UK GVT Nov. 2023 issued 2023 King's speech and briefing note, see #190421.
Background
In Jan. 2022 UK GVT consultation sought views on a number of reforms to the leasehold and commonhold system following recommendations from Law Commission.
These would broaden access to enfranchisement (buying the freehold) and the right to manage a building, UK and Welsh governments agreed the proposals in principle.
Consultation aimed to ensure those affected by proposals had opportunity to comment on impact of the changes before final decisions made, consultation closed Feb. 2022.
UK GVT Response
Consultation received over 2,000 responses, showing strength of interest in reforms.
Government will legislate in Leasehold and Freehold Reform Bill to increase the non-residential limit for collective enfranchisement and the right to manage to 50%.
And legislate to introduce a new right for leaseholders to require freeholders to take leasebacks of non-participating units as part of a collective enfranchisement claim.
UK GVT also wishes to cap the total votes allocated to landlords in right to manage companies to one-third of the total votes of qualifying tenants (leaseholders).
Also responds to Law Commission recommendation for a 50% non-residential limit for individual freehold acquisitions and a number of their proposals to help reinvigorate commonhold, but these will not be included in the Leasehold and Freehold Reform Bill.
On May 24, 2024, UKP, UK GVT confirmed the Leasehold and freehold reform act 2024 (LFRA 2024 (UK)) received royal assent, following agreement by both houses on bill.
Easier and cheaper for leaseholders to buy freehold, increase standard lease extension to 990 years for houses/flats, provide greater transparency re service charges.
Remove barriers for leaseholders to challenge landlords' unjustified charges at tribunal.
Also grant freehold homeowners on private and mixed tenure estates the same rights of redress as leaseholders, and equivalent rights to transparency over estate charges.
Help more leaseholders take over the management of their property if they want to.
Oct. 2024 Commencement Order
On Oct. 9, 2024, UK GVT published The leasehold and freehold reform act 2024 (commencement no. 1) regulations 2024 (StIn 2024/1018) which brings into force some provisions of the Leasehold and freehold reform act 2024(c. 22).
Sections 114 (steps relating to remediation of defects); 115 (remediation orders); 116 (remediation contribution orders); 120 (interpretation of references to other acts), in relation to the definition of Building safety act 2022, come into force on Oct. 31, 2024.
