The King’s Speech promises more Leasehold Reform

In their first King’s Speech the new Labour Government have promised to provide a draft Leasehold and Commonhold Reform Bill in the upcoming parliamentary session – which will restrict new leasehold properties and reinvigorate commonhold.

The word 'draft' in the title is telling – this is not included in the title of most of the proposed pieces of legislation. This suggests that this new legislation won’t pass in this parliamentary session – so leaseholders could be left waiting for years to see the benefit.

While this is good news for leaseholders generally, for those wanting to extend their leases or purchase their freeholds, yet more legislation is a mixed blessing. What these people need is the Labour Government to concentrate on implementing the Leasehold and Freehold Reform Act 2024 passed in the last parliament.

LIVES ON HOLD

Linz Darlington, Founder and MD at Homehold, experts in leasehold extensions: "While far from perfect, this Act could make it cheaper for some leaseholders to extend their leases. It currently offers  no benefit to anyone because it isn’t yet in force."

"In order for many provisions of the 2024 legislation to be commenced, there needs to be additional work on this existing legislation – including setting the rates used to calculate whether lease extension prices will rise or fall.

"Many leaseholders have their lives on hold because of properties they cannot sell or mortgage due to short leases. These people need the Government to concentrate on implementing the 2024 legislation, before they get started on the next thing."

NO MORE DELAYS

The new draft bill could easily become a distraction from getting the existing law implemented. It is likely to rip up lots of the old legislation and start again. The Government might see investing in the work required to put this into force is the equivalent to installing a new kitchen in a house that they fully intend to knock down in a few short years.

"In the briefing note for the King’s Speech, the new Government promise to' act quickly'. Leaseholders certainly need them to implement the existing legislation without delay," concludes Darlington.