Residential Leasehold for Flats

Lord Kamall Excerpts

Thursday 30th November 2023 Lords Chamber

[Baroness Penn (Con)]

Yes, the Autumn Statement set out the way forward we are going to take on that issue. We need proper financing to support our ambitions for more homebuilding. Some of that comes through government support, but the private sector is a key partner here and we need to do everything that we can to unlock investment.

[Lord Kamall (Con)]

My noble friend mentioned there were complications in extending freehold to leaseholders in flats. She does not have to answer everything right now, but I wonder whether she could write to me, and deposit a copy in the Library, about some of those complications, so noble Lords can better understand those barriers to extending freehold?

[Baroness Penn (Con)]

I would be very happy to write to my noble friend but, as I said, in looking at the distinction between houses and flats, the majority of houses have always been provided as freehold, and there are few justifications for building leasehold houses. We have seen, in recent years, this practice being exploited by developers to levy unfair charges on home owners. Flats, on the other hand, have shared fabric and infrastructure and therefore require some form of arrangement to facilitate management. Traditionally, this has been facilitated by a lease, but, as we discussed, commonhold is an alternative way to do this.