Comment COMMENT Revolutionising leasehold
Robert Poole of Glide reflects on the legislative changes proposed and explores the transformative path ahead for owners and managers of blocks of flats
T
he UK stands on the precipice of a historic overhaul in property ownership. With the King’s speech unveiling the anticipated leasehold reform, an age-old system is set to be redefined.
Te Department for Levelling Up, Housing and Communities (DLUHC)
estimates there are around 4.98 million leasehold homes in England, of which 70% are flats and 30% are houses. Te majority of flats in the private sector are leasehold (an estimated 94% of owner-occupied flats and 71% of privately rented flats). Around 8% of houses in England are leasehold. For years, the leasehold system has been a topic of contention, leaving
homeowners and managers of blocks of flats grappling with its intricacies. Te prospect of reform is certainly a breath of fresh air. Both major political parties, each with their own vision, aim to address the fundamental issues that plague the current leasehold system.
LABOUR’S PROMISE TO ABOLISH LEASEHOLD Te Labour Party’s pledge to abolish leasehold within its first 100 days of government is a bold move that seeks to dismantle a centuries-old tradition. Te intention is to replace it with a more transparent and equitable alternative, potentially a commonhold system. Tis radical change could simplify property ownership, eliminate ground rents, and empower leaseholders, however, it poses significant challenges because dispute resolution is much more complicated as it requires all owners of the freehold to be consulted on decisions. With the lack of a first-tier tribunal in place, this could mean disputes are never resolved.
THE CONSERVATIVE PARTY’S COMMITMENT TO SUBSTANTIAL REFORM On the other hand, the Conservative Party is focused on reforming the existing leasehold system. Te Leasehold and Freehold Bill is intended to introduce measures to increase leaseholders’ rights, provide them with more control over their properties, and make lease extensions more affordable.
Te Leasehold and Freehold Reform Bill heralds a landmark shiſt in the
leasehold system. It promises a future where homeowners are granted greater autonomy over their homes, with reduced costs and red tape. Whether the future is Labour’s vision of abolishment or the Conservatives’ less radical reform, we are set to radically alter the leasehold landscape.
“For years, the leasehold system has been a topic of contention, leaving homeowners and
managers of blocks of flats
grappling with its intricacies.” Robert Poole, director of Glide (part of Leaders Romans Group)
OPPORTUNITIES FOR IMPROVEMENT Te reform introduces opportunities for a more empowered homeowner base and transparent property management system, potentially fostering sustainable communities and higher living standards. Enhanced Property Ownership: Reforms aim to empower homeowners by
giving them greater control over their properties. Tis shiſt can lead to more satisfied and engaged property owners. Increased Transparency: Abolishing leasehold or introducing more stringent regulations can bring greater transparency to property transactions.
www.housingmmonline.co.uk | HMMApril/May 2024 | 27
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