Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, by what date he plans to bring forward legislative proposals on leasehold reform.
Answered by Kelly Tolhurst
The Government is taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. This includes measures to ban the sale of new leasehold houses, restrict ground rents to zero for future leases, give freehold homeowners equivalent rights to challenge unfair charges, and close loopholes to prevent unfair evictions.
We are also working with the Law Commission to make buying a freehold or extending a lease easier, quicker and cheaper – and to reinvigorate commonhold to provide consumers with a choice of tenure and the Right to Manage to help empower those that wish to, to take on management responsibilities for their properties.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications with care. We will bring forward leasehold legislation as soon as parliamentary time allows.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to reform the leasehold system of ownership during 2021.
Answered by Lord Greenhalgh
The Government is taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. This includes measures to ban the sale of new leasehold houses, restrict ground rents to zero for future leases, give freehold homeowners equivalent rights to challenge unfair charges, and close loopholes to prevent unfair evictions
We are also working with the Law Commission to make buying a freehold or extending a lease easier, quicker and cheaper – and to reinvigorate Commonhold to provide consumers with a choice of tenure and the Right to Manage to help empower those that wish to, to take on management responsibilities for their properties.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications with care. We will bring forward leasehold legislation as soon as parliamentary time allows.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the BBC Panorama investigation into (1) shared ownership schemes, and (2) abuses of the leasehold system.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service
We have confirmed the new model for Shared Ownership which will be more consumer friendly, easier to access and fairer, leading to a better experience for a future generation of shared owners. We have lowered the minimum share to 10%, introduced manageable 1% staircasing and introduced a 10 year period during which the landlord will support the shared owner with the cost of repairs.
We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. This includes measures to ban the sale of new leasehold houses, restrict ground rents to zero for future leases, give freehold homeowners equivalent rights to challenge unfair charges, and close loopholes to prevent unfair evictions.
We are also working with the Law Commission to make extending a lease easier, quicker and cheaper – and to reinvigorate Commonhold to provide consumers with a choice of tenure and the Right to Manage to help empower those that wish to, to take on management responsibilities for their properties.
In January this year the Law Commission published their first of four reports, on the valuation aspects of enfranchisement, and on 21 July the Law Commission published a further three reports on the remaining aspects of enfranchisement as well as Commonhold and Right to Manage. Details can be found (attached)here: https://www.lawcom.gov.uk/project/residential-leasehold-and-commonhold/. We will be publishing further details of how Government will take forward reform across these key policy issues as soon as possible.
Asked by: Hilary Benn (Labour - Leeds Central)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, when he plans to respond to the Law Commission’s recommendations on leasehold reform; and if he will make a statement.
Answered by Kelly Tolhurst
We are working with the Law Commission to make buying a freehold or extending a lease easier, quicker and cheaper, and to reinvigorate Commonhold to provide consumers with a choice of tenure, and to reform the Right to Manage to help empower those that wish to, to take on management responsibilities for their properties.
In January this year the Law Commission published their first of four reports, on the valuation aspects of enfranchisement, followed on 21 July by their further three reports on the remaining aspects of enfranchisement, Commonhold, and Right to Manage. Further information can be found here: https://www.lawcom.gov.uk/project/residential-leasehold-and-commonhold/.
We will be publishing further details of how Government will take forward reform across these key policy issues as soon as possible. This is a long-term reform programme; it is complex and controversial with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications with care.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what plans his Department has to respond to the Law Commission’s three reports on reforming residential leasehold and commonhold, published on 21 July 2020.
Answered by Kelly Tolhurst
The Government is taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. We are working with the Law Commission to make buying a freehold or extending a lease easier, quicker and cheaper – and to reinvigorate Commonhold to provide consumers with a choice of tenure and the Right to Manage to help empower those that wish to, to take on management responsibilities for their properties
In January this year the Law Commission published the first of four reports, on the valuation aspects of enfranchisement, and on 21 July a further three reports on the remaining aspects of enfranchisement as well as Commonhold and Right to Manage. We will consider all their recommendations carefully and respond in due course.
Details can be found here: https://www.lawcom.gov.uk/project/residential-leasehold-and-commonhold/ .
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 6 March 2020 to Question 22054, what his timetable is for bringing forward legislative proposals on leasehold and commonhold reform.
Answered by Kelly Tolhurst
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market.
In January this year the Law Commission published the first of four reports, on the valuation aspects of enfranchisement, and on 21 July on the remaining aspects of enfranchisement as well as Commonhold and Right to Manage. We will consider all their recommendations carefully and respond in due course.
Details can be found here: https://www.lawcom.gov.uk/project/residential-leasehold-and-commonhold/.
Given the impact of Covid-19 on the legislative agenda, we will bring forward leasehold legislation as soon as parliamentary time allows.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what support or guidance is available to leaseholders on their rights with regard to leases on residential properties.
Answered by Christopher Pincher
Leaseholders can seek free initial advice via the Leasehold Advisory Service, the specialist body funded by the Department to provide assistance to leaseholders. Further information on the rights of leaseholders and other leasehold matters can be provided through the website (https://www.lease-advice.org/), via a telephone appointment with one of LEASE's advisers (020 7832 2500), or by email (info@lease-advice.org).
There are other specialist advisers who leaseholders might want to consult including:
There are also a number of other organisations or groups who leaseholders may want to consult including:
Asked by: Thangam Debbonaire (Labour - Bristol West)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, when the Government plans to respond to the Law Commission report on leasehold reform, published in July 2020.
Answered by Kelly Tolhurst
The Government asked the Law Commission to make recommendations on a range of leasehold reforms, including reviewing current enfranchisement arrangements to make them easier, faster, fairer and cheaper, as well as reinvigorate commonhold and make it easier for homeowners to take control of the management of their block of flats or an estate. The Law Commission reports on the enfranchisement process, commonhold and Right to Manage were published in July, following their January report on valuation. We are considering these in detail and will set out our preferred way forward in due course.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the effectiveness of the use of collective enfranchisement rights by property developers; and what steps he is taking to ensure the effective scrutiny of that procedure.
Answered by Luke Hall - Minister of State (Education)
Enfranchisement rights are used by leaseholders to acquire the freehold of their buildings. Part I of the Leasehold Reform, Housing and Urban Development Act 1993, as amended by the Housing Act 1996 and the Commonhold and Leasehold Reform Act 2002 allows for collective enfranchisement, and lease renewal rights for leaseholders of flats.
The Government is looking to standardise the enfranchisement process and asked the Law Commission to review current arrangements to make them easier, quicker and cheaper. The Law Commission published its first report to Government, on the valuation aspects of enfranchisement, on 9 January 2020. The report, which follows a consultation by the Law Commission, sets out a number of options relating to valuation, including purchasing a freehold and extending the lease of a house or flat. Details can be found at https://www.lawcom.gov.uk/project/leasehold-enfranchisement/. The Law Commission will publish a report on the remaining aspects of enfranchisement shortly. The Government will carefully consider the proposals outlined in the Law Commission’s reports and set out its preferred way forward in due course.
Asked by: Karin Smyth (Labour - Bristol South)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, when he plans to bring forward legislative proposals on (a) leasehold property and (b) the right to manage.
Answered by Luke Hall - Minister of State (Education)
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are taking forward a comprehensive programme of reform to end unfair practices in the leasehold market. This includes measures to ban the sale of new leasehold houses, restrict ground rents to zero for future leases, give freehold homeowners equivalent rights to challenge unfair charges, and close loopholes to prevent unfair evictions.
We are working with the Law Commission to simplify the process of leaseholders exercising their Right to Manage, so that it is easier for leaseholders to come together to take on responsibilities for the ownership of their property. They will be publishing their report on this shortly, alongside reports on enfranchisement and commonhold, and we will consider these and set out our proposed way forward in due course.
Given the impact of Covid-19 on the legislative agenda, we will bring forward legislation on leasehold reform as soon as Parliamentary time allows.