Download the full outcome
Detail of outcome
The government’s consultation ‘Implementing reforms to the leasehold system’ looked at how a number of measures to tackle unfair practices in the leasehold market should work in practice.
The consultation received over 1,200 replies, demonstrating the strength of interest in the issue.
This document provides a summary of responses to the consultation. It also provides the government’s response which includes confirmation of our commitment to legislate to ensure that all new houses will be sold on a freehold basis, with specific exemptions for exceptional circumstances, and to reduce ground rents on future leases to a peppercorn (zero financial value).
We have also decided to give freeholders on private and mixed-use estates the right to challenge the reasonableness of estate rent charges and the right to apply to the First-tier Tribunal to appoint a new property manager, and to mandate that freeholders and managing agents must provide leasehold information – when a home is being sold – within 15 days and set the maximum fee for providing this information at £200 (plus VAT).
In December 2017, the government announced it would tackle unfair practices in the leasehold market by introducing legislation to prohibit new residential long leases from being granted on houses, other than in exceptional circumstances, and restrict ground rents in newly established leases of houses and flats to a nominal amount.
The consultation sets out how the government intends to make changes and on how we should implement the reforms. This includes understanding circumstances for exemptions and measures to improve how leasehold properties are bought and sold.
The consultation also promotes fairness for freeholders and includes proposals to ensure that the charges that freeholders may pay towards the maintenance of communal areas are fairer and more transparent.