July 2018
The inquiry will examine the progress made by the Government regarding the leasehold reform measures it set out in ‘Tackling unfair practices in the leasehold market summary of consultation responses and response in December 2017’. Those measures include:
- Legislating to prevent the sale of new build leasehold houses except where necessary such as shared ownership.
- Making certain that ground rents on new long leases – for both houses and flats – are set at zero.
- Working with the Law Commission to support existing leaseholders and make the process of purchasing a freehold or extending a lease much easier, faster and cheaper.
- Providing leaseholders with clear support on the various routes to redress available to them.
- A wider internal review of the support and advice to leaseholders to make sure it is fit for purpose in this new legislative and regulatory environment.
- Making sure freeholders have equivalent rights to leaseholders to challenge unfair service charges.
The Committee is particularly concerned with what more can be done for existing leaseholders, in both houses and flats, affected by onerous terms such as high service and administrative charges, and large increases in ground rents.
Clive Betts MP, Chair of the Housing, Communities and Local Government Committee, said:
“With around four million leasehold homes in England, they make up a significant part of the private home ownership sector. We’ve heard however that leaseholders often come up against significant issues which affect their rights, from high service charges with a lack of transparency through to excessive ground rents and barriers to buying freeholds. The Government has said it is committed to various reforms to tackle some of the troubling practices in the sector. As a Committee, we will want to examine the effectiveness of the existing proposals, find out what more needs to be done to boost confidence in the system and ensure fairness for both existing and future leaseholders.”
The Committee is inviting submissions on:
- The adequacy of the Government’s programme of work on residential leasehold reform, including (a) its application to existing leaseholders in both houses and flats and (b) whether further reforms should be introduced;
- What support and government intervention can be provided to existing leaseholders, in both houses and flats, affected by onerous leasehold terms; and
- What are the implications of providing such support and government intervention to these existing leaseholders.
The deadline for written submissions was Friday 7 September 2018.
Further information:
- Housing, Communities and Local Government Select Committee webpage
- Tackling unfair practices in the leasehold market – A consultation Paper and LEASE Response
