Reed under immediate pressure on leasehold reform
New Housing Secretary Steve Reed must outline when reform to leasehold and freehold laws will be introduced.
That’s the demand from the trade body that represents professionals working with leasehold and freehold contracts.
Complete overhaul
In March, the Government published a Commonhold White Paper promising to completely overhaul the leasehold system, including a ban on new leasehold flats and ground rent.
The plans built on The Leasehold and Freehold Reform Act 2024, which was one of the only laws that made it through at the last minute under the Conservative government.
Under the white paper commonhold would be made the default tenure.
Progress stalled
Now, Mark Chick, Director at ALEP (Association of Leasehold Enfranchisement Practitioners), has written to Reed asking what is happening now.
“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,” he says.
Urgently needed
“Clarity is also urgently needed on the secondary legislation required to bring the LAFRA fully into force.”
He warns: “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”.
“We also await the publication of a Leasehold and Commonhold Reform Bill, announced in the King’s Speech in July 2024.”
The post Reed under immediate pressure on leasehold reform appeared first on The Negotiator.
Author: Gemma
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