Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Leasehold Described as 'Life Sentence' Despite New Government Reforms
A leading campaigner has described leasehold as a “life sentence” on the day the Government announced new protections for leaseholders, set to be implemented from 2027. The Government says the measures will provide greater transparency and stronger powers for leaseholders to challenge unfair costs.
Katie Kendrick OBE, Founder of the National Leasehold Campaign, criticised the slow progress of reforms, stating that many leaseholders remain unable to sell or move due to unaffordable costs. Her comments followed the Government’s announcement of new measures, which were introduced in response to a consultation last year and follow the Leasehold and Freehold Reform Act 2024.
The Government’s reforms include requirements for landlords to provide leaseholders with an annual report on the building’s condition and plans for major works. A new service charge demand form will also be introduced, detailing what charges cover. Additionally, landlords must provide fire safety information and maintenance invoices from up to six years prior, upon request.
The Government has also launched two further consultations aimed at making it easier for leaseholders to extend their lease or buy their freehold. These consultations will consider setting specific valuation rates in regulations and protecting leaseholders from paying their landlord’s legal, valuation, or administrative fees during the process.
The upcoming Commonhold and Leasehold Reform Bill will ban leasehold for new flats and cap ground rents at £250. In the meantime, leaseholders continue to face rising service charges, which have deterred some mortgage providers from lending on leasehold properties, making them difficult to sell.
These developments are particularly relevant for UK letting agents and inventory clerks, as changes to leasehold regulations and service charge transparency may impact property management and transactions in the sector.
Source: The Negotiator