Industry bodies quiz Gove over leasehold reform implementation | Mortgage Strategy

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A number of property industry organisations, including the Intermediary Mortgage Lenders Association, Propertymark and the Society of Licensed Conveyancers (SLC) have written to Michael Gove, urging him to implement formally discussed leasehold reform measures.

These include the Law Commission’s report on leasehold enfranchisement, right to manage and commonhold, the regulation of property agents, and legislation for the delivery of property information from seller to buyer prior to offer.

They also include previously announced legislation, such as leasehold reform, managed freehold, and for the setting of reasonable fees and timescales for administrative activities.

The letter states that the bodies are “disappointed” that the government has yet to realise these measures, “given the exploitation continues and increases with every passing day”.

It adds that the government has publicly supported these measures and recommendations, which the letter describes as being “generally non-contentious”.

Just a few days ago, the leasehold reform bill passed its third reading through the House of Commons, meaning that restrictions on ground rent for newly built properties will likely become law.

However, during the reading, an amendment that would see ground rent removed for all existing leasehold properties suffered a defeat of 306 votes to 162 on a Conservative majority.

Conveyancing Association director of delivery Beth Rudolf says: “When it comes to improving the lives of so many leaseholders, the government has already done its listening and has outlined and supported a large number of measures which have full industry and market support, and would make a world of difference.

“In that sense, we are simply calling on the government to fulfil its obligations in this area. By doing this we can ensure leaseholders can set in motion parts of the property-owning democracy that are simply not open to many of them, such as selling their properties or securing a mortgage.

“Plus, we can move towards a much fairer system for all – the hard work has effectively been done and it is now time to move these measures through to their natural legislative conclusion where they will make a huge difference.”

Meanwhile, SLC chairperson Simon Law comments: “The society has been closely engaged with government on leasehold reform, as well as the related issue of cladding, both directly and through the Home Buying and Selling Group for a number of years.

“We believe there is a once in a generation opportunity to make meaningful reform to leasehold title, to include a migration to commonhold where appropriate, which will benefit not only leaseholders but also landlords. Our joint letter to Gove makes explicit the measures that would constitute meaningful reform, many of which the government has already said are on its agenda.

“Bringing these measures together in a single document (which forms the appendix to the letter) provides the basis for coherent reform.”


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