Leasehold Enfranchisement Debate
Full Debate: Read Full DebateEarl of Devon
Main Page: Earl of Devon (Crossbench - Excepted Hereditary)Department Debates - View all Earl of Devon's debates with the Ministry of Housing, Communities and Local Government
(1 year, 3 months ago)
Lords ChamberI thank the noble Lord for that question. I am afraid I cannot tell him whether the few cottages on the Isles of Scilly that he refers to will be covered, but I am sure he will ask further questions during the passage of that Bill.
My Lords, over 20 years ago we introduced the law of commonhold, and I think I contributed to a textbook on the subject as a junior barrister. In the years since, I think only about 20 commonholds have been established. I know the Law Commission looked at this a couple of years ago, and commonhold is designed to be a better alternative to leasehold without the complications. Can the Minister explain what is happening to update commonhold and to encourage the adoption of it?
The noble Earl brings up a very interesting point. Commonhold, as he knows, allows home owners to own the freehold of a unit, such as a flat, within buildings and it is commonplace in places such as Australia, New Zealand, the US and Canada. Unlike leasehold, commonhold does not run out, there is no third-party landlord and owners are in control of the costs and decisions affecting the management of their buildings. Commonhold was introduced in this country in 2002, but for some reason it has not taken off and, as the noble Earl says, there are currently fewer than 20 commonhold developments. In 2020, the Law Commission recommended reforms to reinvigorate commonhold as an alternative to leasehold ownership, and the Government are looking at this and will respond in due course.