Government consults on extensive residential leasehold reforms for England and Wales

  • Legal Development 21 January 2022 21 January 2022
  • UK Real Estate Insights

Last week, DLUHC launched a consultation seeking views on a number of reforms to the existing residential leasehold and commonhold systems, following recommendations contained in three comprehensive Law Commission reports on the future of home ownership published in July 2020. Responses to the consultation must be submitted by 22 February 2022.

As part of the UK Government’s proposals for wide-ranging reforms to residential leasehold law intended to make leasehold ownership fairer, the consultation specifically seeks views on proposals that would:

  • give significantly more leaseholders the power to buy the freehold of their building (a process known as collective enfranchisement) or take over management of their building under ‘right to manage’ powers;
  • reduce the cost of buying a freehold by allowing leaseholders to require landlords to take leasebacks of non-participating flats;
  • clarify how shared ownership leases could function in commonhold developments; and
  • improve the efficiency and transparency of the home buying and selling process for commonhold.

Although the reforms relate to residential property, some of the proposals will have a significant impact upon landlords of mixed-use properties.

Residential developers, landlords and leaseholders should consider the proposals for reform carefully and respond to the consultation before the 22 February deadline.

A link to the consultation can be found here, and a link to details of the three Law Commission reports can be found here.



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