EXPERT: ‘Leasehold reform still years away after progress stalls’

The Leasehold and Freehold Reform Act was passed more than a year ago, but there is still no sign of change happening soon says Linz Darlington.

leasedhold

Progress towards reform of the leasehold and freehold law in England and Wales is “excruciatingly slow”, experts warn.

The Leasehold and Freehold Reform Act was one of the only law changes that made it through the ‘wash-up’ in Parliament before the General Election was called in May last year.

It meant a ban on leaseholds for new houses would become law, as well as extending the standard lease term to 990 years. But a controversial cap on ground rent was left out.

Go further

Labour then said in the King’s Speech after the Election it would go further with reform and quickly. This would include giving leaseholders greater rights to extend their lease, buy the freehold, and take over the freeholder’s building management functions.

But ‘secondary legislation’ was required to make any of the measures become actual law, and this was where the hold-up is, with ministers admitting the changes were “highly complex”.

Deficiencies

And now, experts are saying there is no sign the act will become law anytime soon.

In a House of Commons debate this week, Housing Minister Alex Norris confirmed that the public consultation required to implement key parts of the act was still pending.

And he also suggested that further primary legislation was now needed to correct deficiencies in the act.

While that’s a long-term goal many support, it’s years away from being viable.”

Linz Darlington, founder of leasehold extension specialists Homehold, (main image) says: “We’ve known since November 2024 that a consultation would be needed to move forward.

“Now, rather than focusing on implementing what’s already been passed, the Minister is talking about using this as an opportunity to transition to commonhold.

“While that’s a long-term goal many support, it’s years away from being viable.”

Darlington called the whole process “excruciatingly slow”.

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