Reforms to give leaseholders greater rights, protections and control over their homes will be brought forward next year.
The government made the announcement alongside plans to bring what it called “the feudal leasehold system” to an end.
Housing minister Matthew Pennycook said measures in the Leasehold and Freehold Reform Act will be implemented “at pace” in the new year.
The aim is to enable more leaseholders to buy their freehold or extend their lease without having to wait two years from when they bought their property.
The government wants to make commonhold the “default tenure” for all flats as under commonhold, those who buy flats own their home outright. Commonholders can then join an association, which typically owns and manages the common, shared spaces in the building.
Ministers will bring forward a white paper on the proposals – the Leasehold and Commonhold Reform Bill – in the second half of next year, followed by a consultation on the best approach to banning new leasehold flats.
Tackling unregulated and unaffordable ground rents, an end the injustice of ‘fleecehold’ where homeowners on freehold estates pay fees and remove the draconian threat of forfeiture will also be subject to reforms.
The government said these changes, together with strengthened regulation of managing agents, will ensure existing leaseholders are better protected.
Mr Pennycook said: “I am pleased to set out the steps we will take to provide relief to those currently subject to unfair and unreasonable practices and to progress the wider set of reforms necessary to end the feudal leasehold system for good.”
Sheldon Bosley Knight associate director and regional sales manager, Lara Hawkins said: “If this comes in, then this is very welcome news, however forgive me for not getting too excited.
“My experience tells me it may not be as easy to implement as quickly as our government suggests. We have already had one u-turn on the amended Law Society forms this year, when it was decided the new TA6 was too complicated after implementation of Material Information, and I fear the final communication of new legislation and interpretation by the conveyancers will not be consistent.
“For the residential estate agent, and despite best endeavours to get legally prepared, leasehold transactions are all too often fraught with complicated enquiries, protracted communication with management companies and a lack of understanding on the part of the buyer and seller – sadly due to conveyancers not having the time or experience to properly explain reasons for Deeds of Variation, compliance with the CML and why their ground rent might escalate!”
