Many thanks to those constituents who have contacted me about leasehold reform.
As you will no doubt have seen, my colleague Matthew Pennycook made a statement to the House of Commons on Tuesday setting out the next steps in the government’s commitment to deal with leasehold, including publishing the draft legislation, as promised.
This will make it easier for existing leaseholders to convert to commonhold should they wish to do so, and ban the use of leasehold for most new flats.
The Bill will also support existing leaseholders by capping ground rents at £250 a year, changing to a peppercorn after 40 years, and by abolishing the draconian threat of forfeiture. In place of forfeiture, the Bill will introduce a new, fairer and more proportionate lease enforcement scheme benefitting both leaseholders and landlords. In addition, the Bill will tackle similarly harsh enforcement powers that apply to estate rent charges on freehold estates by repealing those powers as they relate to estate rent charges.
Taken together, these reforms will significantly improve the current system for the 5 million existing leasehold properties and their owners, while ensuring a better deal for future generations of homeowners in England and Wales. The Bill will give homeowners much greater security and control over their homes through access to fit for purpose and modern commonhold ownership.
I have pasted below links to Matthew’s statement and a copy of the draft Bill and associated document.
https://www.gov.uk/government/publications/draft-commonhold-and-leasehold-reform-bill
I hope this is helpful and that you will agree that we are making progress.
Best wishes
Hilary Benn MP