Propertymark urges government to press ahead with leasehold reform

Propertymark has urged the UK government to press ahead with leasehold reform ahead of the Second Reading of the Leasehold and Freehold Reform Bill in the House of Lords on 27 March 2024.

The Bill would make long-term changes to the residential leasehold property system in England and Wales.

Approximately 500 households whose homes are owned by eight different companies will be free from what the Competition and Markets Authority has dubbed as ‘problematic’ leaseholds, which witnessed the ground rent they paid double every ten to 15 years.

Timothy Douglas, head of policy and campaigns at Propertymark, said:

“It is vital that the UK government considers a ground rent ban as part of the Leasehold and Freehold Reform Bill.

“There are many steps policymakers can take to simplify leasehold such as making enfranchisement easier, the lease extension process being simplified, and freeholders joining a redress scheme where there is no managing agent.

“Furthermore, developers are not expected to abide by any current minimum standards to work in the property sector and there are no statutory rules to guarantee that those buying and selling leasehold property are appropriately qualified, which must also form part of the legislation to provide great protections for consumers.”

Some 72% of agents support restricting ground rents, with over half (55%) wanting to cap them.

Kindly shared by Property Wire