Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

MPs Call for Stronger and Faster Leasehold Reform

A cross-party committee of MPs has called on the government to strengthen and accelerate its proposed Commonhold and Leasehold Reform Bill. The Housing, Communities and Local Government (HCLG) Committee published a report urging further changes to meet expectations around leasehold reform.

The committee described the draft legislation as a significant step towards giving leaseholders greater control over their buildings. However, it argued that the reforms should go further in addressing ground rents, service charges, and property management practices.

Among its recommendations, the committee urged the government to strengthen protections against unreasonable fees, improve measures to increase homeowner control, and establish an independent regulator for property management agents. The report specifically called for regulation of property management agents, stating that major firms have delivered poor standards of service without consequence. The committee recommended that the government include provisions for an independent regulator with the power to sanction rogue agents, including removing their licence to operate.

The report welcomed the proposed ground rent cap of £250 per year for all existing leaseholders but recommended that the government accelerate the timetable to bring in the cap by late 2027. The committee also questioned the government's proposed 40-year transitional period to zero ground rent, suggesting that a shorter period of 20 years could also be considered.

The committee expressed concern that several recommendations previously made by the Law Commission are missing from the draft bill. It stated that these measures, promised in the government's manifesto, would make it easier and more affordable for existing leaseholders to convert to commonhold. The committee called for the government to enact the Law Commission's recommendations to avoid making commonhold unattainable for homeowners trapped in the leasehold system.

The report also made recommendations on technical changes to ensure commonhold works as intended and suggested making conversion to commonhold the default outcome of a collective process.

These proposed changes are relevant to letting agents and inventory clerks, as they could impact property management standards, regulation, and the rights of leaseholders in the UK property sector.