Property Insights: Leasehold reform regains momentum

In our Spring Insight we reported on the announcement from Michael Gove, Secretary of State at the Department for Levelling Up, Housing and Communities outlining an intention to abolish the ‘feudal’ leasehold system. It was therefore somewhat of a surprise to all, just months later in May, to read a further ministerial announcement that saw these proposals side-lined and leasehold seemingly given a reprieve.

Where does this announcement leave leasehold reform? To have abolished leasehold completely and to have introduced a new tenure in the form of a reinvigorated commonhold in such a short period would undoubtedly have been chaotic and possibly counter-productive and would quite possibly have led to significant disruption and uncertainty for all those familiar with the current leasehold system.

Whilst we still have relatively little detail as to what is planned and exactly when it will happen, leasehold reform is however still on the government agenda, albeit less radical than envisaged at the start of the year, as evidenced by the proposed significant reforms set out in the Renters (Reform) Bill.

Want to know more?Property Insights where our team of experts shine a spotlight on new legal developments and offer some insights on issues that are currently shaping the property market. Access the bulletin here or download a PDF copy here.

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