Government plan to abolish leaseholds will be a nightmare
RFA says move is unnecessary, impractical and unpopular and will not deliver benefits as claimed by Government.
The Government’s plan to abolish leaseholds on apartment buildings will be a nightmare for the majority of residents and is unlikely to make the Conservative Party popular in the long-term, the Residential Freehold Association (RFA) has warned.
Writing on the ConservsativeHome website Mick Platt (pictured), director of the RFA, says not only will abolishing leasehold blight investor confidence but he also points to Scotland, highlighting how a similar policy has not worked out as planned.
One of the main alternatives that has been proposed to replace leasehold is a commonhold system – where, in effect, residents manage their buildings.
He adds: “While commonhold may be appropriate for smaller apartment buildings where residents can more easily assume management of a building, it is irresponsible to advocate for such a system in larger, more complex buildings.
“In Scotland, if the roof of a large apartment building needs repairing due to leaking, the top floor’s residents who are affected by it would need to raise money from others in the building to carry out repairs. Some leaseholders in the building may not reside there, meaning there is difficulty in tracing them.”
CRITICAL
Recent studies suggest that 50% of all properties in Scotland are in “critical disrepair” because there is no legally enforced maintenance system for buildings.
The current Government’s war on leasehold is unnecessary, impractical and will certainly be unpopular.”
Platt adds: “This is the fate that awaits apartment blocks in England in 10-20 years’ time.
“The UK’s building safety crisis will not be resolved through a transition to commonhold. In reality, it will worsen the plight of those living in dangerous buildings.
“In short, the current Government’s war on leasehold is unnecessary, impractical and will certainly be unpopular once the public realise what it means in practice.”
Yesterday The Neg reported that The Department of Levelling up, Housing and Communities had published a call for evidence on leaseholder-owned buildings above 11 meters or five storeys, as fears over building safety linger on in the wake of the Grenfell disaster.
You can read Mick Platt’s full article here.
I couldn’t agree less. Commonhold will solve far more problems than it might initially create. The only objectors will be the vested interests who buy investment freeholds to make an easy buck and charge exorbitant fees whenever the terms of a lease are changed. It’s patronizing to suggest flat owners won’t do a better job managing their own developments than a Freeholder whose only concern is maximizing their investment.