The Minister for Housing and Local Government (Grant Shapps)
I have today published a consultation paper containing proposals for updating the property value limits which are used to determine whether certain rights are available to residential long leaseholders. These are rights for such leaseholders to remain in their properties as assured tenants when their lease comes to an end, to extend the lease of their leasehold house or to purchase the freehold of a leasehold house (enfranchise) on particular terms.
One qualifying condition for these rights is that the property should fall within a certain value limit. These limits were last updated in April 1990. We are now proposing that they should be updated again so that these rights are not taken away from residential long leaseholders through the effects of property price inflation.
This is part of our wider desire to ensure that an appropriate balance is maintained between the rights of freeholders and leaseholders.
The online consultation seeks views on the proposals and will run for 12 weeks until 12 September 2011. The Government would welcome responses from a wide range of organisations and individuals.
A copy of the consultation paper has been placed in the Library of the House.