LEASEHOLD REFORM

Many CLTs (and other types of community led housing groups) use leasehold to keep homes affordable in perpetuity, and to finance and manage shared facilities. They also use ground rents to collect income for the use of their land and facilities.

We support the campaign to end the abuse of leasehold and promote commonhold. But the reforms need to protect these ethical uses of leasehold by CLTs.

The Government has accepted some of our arguments. It has instructed Homes England not to give financial aid to projects with leasehold houses, but exempted community led housing from this ban. It has banned the collection of residential ground rents in new development, but clause 2 of the Act excepts ‘community housing leases’ including those where a CLT is the freeholder.

But further change is needed.

The House of Commons Library has a useful background briefing on leasehold reform, with links to the various consultations by the Government and Law Commission on this issue in recent years.

We have also written our own briefing setting out why CLTs use leasehold, the current position for CLTs, and our position on leasehold enfranchisement and commonhold.

You can also read all of our detailed responses to the various consultations since 2017:

2018 Leasehold reform consultation

Our response, jointly with UKCN, to the Govenment’s second consultation on implementing exemptions for community led housing.

Law Commission Leasehold consultation

Our response, jointly with UKCN, to the Law Commission’s consultation in 2019 on leasehold reform.

  Download our briefing on Leasehold Refom