Concerns were raised about the absence of central elements of the promised reforms when the Bill was first introduced to Parliament in November 2023. The UK Government said it would bring in amendments as it made its way through the Parliamentary process, but whilst a ban on new leasehold houses is now added, Housing Minister Lee Rowley, MP, stated restrictions on ground rent are still being considered.

If the Leasehold and Freehold Reform Bill becomes law, it’s expected that the sales market for leasehold properties will be reinvigorated. Leasehold is a complex area and can be intimidating for agents and consumers, so what are the fundamentals of the current situation, and how will this change if the Bill is introduced?

The UK Government should take advantage of the momentum in leasehold reform to stamp out ground rents, invigorate property sales, and promote professional management of leasehold property by qualified and regulated agents.

Matthew Pennycook, MP, has put forward an amendment which would lead to implementation of the Regulation of Property Agents working group report within 24 months of the Leasehold and Freehold Reform Bill becoming law, whilst Martin Boyd, Chair of the Leasehold Advisory Service, lent his full support to the statutory regulation of agents, stating that it is ‘simply wrong’ that there are no qualification requirements for private sector property managers.

The Welsh Government intends to build on changes made in 2018 when the use of some combustible materials in the external walls of high-rise residential buildings was banned. The current proposals look at a range of new materials to be covered, extend the types of buildings, include buildings between 11 and 18 metres in height and include new regulations about emergency systems and procedures.

Virgin Money, TSB and Skipton Building Society will now consider applications for properties in buildings that are yet to be remediated, or where leaseholders are protected from remediation costs, however, buildings that are excluded from such protections do not benefit.

The Leasehold and Freehold Reform Bill passed its Second Reading in the House of Commons on 11 December 2023 and was broadly welcomed with cross-party support, despite criticism that it does not go far enough.

There is a confirmed route to remediation for all buildings over 11 metres in Wales, with ten major UK developers already lined up to complete fire safety works. Alongside new cladding valuation guidance expected from the Royal Institute of Chartered Surveyors (RICS), these plans demonstrate to valuers and lenders that essential work can be carried out at no cost to leaseholders.

A ban on new leasehold houses and limits on ground rent for new flats are contained in the long-promised and eagerly awaited Bill, and for existing leaseholders, selling should be made quicker and easier.

A public consultation has opened on proposals to cap ground rents in England and Wales as the UK Government begins its latest action to reform the sector. Legislation is already in place in the Ground Rent Act 2022 to ensure that new residential leases are restricted to a peppercorn ground rent, and this new proposal sets out options to extend this protection to existing leaseholders.

Five multi-occupancy building insurance providers have agreed to act on concerns about the value and transparency of commission and commission sharing practices. They have promised to help reduce costs and improve disclosure for residential leaseholders in buildings with fire safety issues.

School closures made headlines over the summer of 2023, but these are not the only buildings that could be affected by structural issues because of old or badly maintained materials. Property agents need to understand key facts relating to domestic and commercial buildings, especially those who deal with leaseholds.

The UK Government has outlined its priorities for the months ahead at the State Opening of Parliament which includes a ban on new leasehold houses in England and Wales and the delivery of the much-discussed Renter’s (Reform) Bill.

Minister of State (Housing and Planning) Rachel Maclean, MP, has confirmed that plans to phase out leasehold will be part of the King’s Speech on 7 November 2023. The Bill is expected to ban leaseholds for houses, but not new flats.

The Financial Conduct Authority (FCA) has confirmed new measures to reform the multi-occupancy buildings insurance market, coming into effect on 31 December 2023, will force firms to act in the best interests of leaseholders. In addition, the Department for Levelling Up, Housing and Communities (DLUHC) has stated it will act to ban the payment or sharing of insurance commissions with property managing agents, landlords and freeholders.

The Department for Levelling Up, Housing and Communities (DLUHC) has published updated guidance explaining the information required to complete the Leaseholder Deed of Certificate (LDoC), and what information landlords in England must provide in the Landlord’s Certificate from 5 August 2023.