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Government publishes response to the Housing, Communities and Local Government Select Committee’s Leasehold Reform Inquiry

July, 2019

Today, 3rd July, the Government has published its response to the Housing, Communities and Local Government Select Committee’s Leasehold Reform Inquiry. The Committee launched its inquiry in July 2018 and subsequently published its report and recommendations in March this year.

The Government has considered each recommendation from the Committee and agrees with the following measures:

  1. Give clearer information to consumers on how to buy and sell leasehold properties;
  2. Consider the Committee’s views on commonhold in light of the Law Commission’s report;
  3. Work with developers on a standardised ‘key features’ document so consumers have clear details on the lease before they buy;
  4. Remove any financial value from future ground rent;
  5. Ensure the Law Commission is able to fully consider the application of unfair terms;
  6. Update planning guidance to state there should be clear and transparent agreement between developers and local authorities on public areas and utilities to be adopted;
  7. Consider the Committee’s recommendations on permission fees, major works (including a code of practice) and other charges in light of Lord Best’s report;
  8. Explore further the best means to challenge unjustifiable legal costs, including what changes to legislation are needed;
  9. Explore legal changes to forfeiture by asking the Law Commission to update their work on forfeiture;
  10. Extend mandatory membership of a redress scheme to all freeholders of leasehold properties; and
  11. Implement improvements to enfranchisement as soon as possible.

LEASE’s interim Chair, Wanda Goldwag, said:

“We welcomed the Committee’s report in March, and we now welcome the Government’s response to the Committee’s recommendations. Our work continues with the Ministry of Housing, Communities and Local Government to improve and strengthen LEASE.

The Government’s recognition that LEASE provides a valuable service to leaseholders is also welcome; and I can confirm that LEASE’s Board of Directors will continue to include leaseholders”

Further information

LEASE is governed by a board, appointed as individuals by the Secretary of State for the Ministry of Housing, Communities & Local Government.

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