Property leaders have slammed a new act which they say was rushed through and makes leasehold law “more uncertain not less”.

The Leasehold and Freehold Reform Act 2024 just made it through before Parliament was dissolved for the General Election.

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

The act is on the statute books, but it is not yet in force, as many parts of the bill require secondary legislation to be passed.

Championed

It was championed by Housing Secretary Michael Gove, who later announced he was standing down as an MP at the election.

“This Act leaves more uncertainty than certainty,” said a member of the Association of Leasehold Enfranchisement Practitioners (ALEP) in a recent member poll on the new law.

Immediately after the act became law, ALEP polled its members, and in response, 94% stated that more time in Parliament would have been beneficial, with only 6% believing that it had received enough scrutiny.

And 60% agreed that another bill was necessary to sort the mess out.

Too early to say

Others (40%) felt that it was ‘too early to say’, but no members felt that leasehold reform had been satisfactorily dealt with through the new law.

Mark Chick, Director at ALEP (main picture), says: “Whether a second Bill is imminent will be dependent on the choice that the country makes on 4 July.

“Bringing the act to life will be a challenge for the new government (of whatever political hue).”

Ban new leasehold flats

The Conservative Party promises to “complete the process of leasehold reform including capping ground rents at £250 and reducing them to peppercorn over time”.

Labour says it will “finally bring the feudal leasehold system to an end”, banning new leasehold flats.