Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the adequacy of consumer protections for leaseholders undertaking informal lease extensions, in the context of the (a) absence of specialist qualification requirements for solicitors handling such transactions, (b) exclusion of lease extension advice from Financial Conduct Authority regulation and (c) lack of price controls in the informal extension process.

My Department has considered the adequacy of consumer protections for leaseholders undertaking informal lease extensions as part of the wider package of leasehold reform.

The Leasehold Reform (Ground Rent) Act 2022 already provides some protections by restricting the ground rent payable following a non-statutory lease extension. Given that the Leasehold and Freehold Reform Act 2024 will make the statutory route cheaper and easier, we expect more leaseholders to use it in future.

Solicitors must meet the Solicitors Regulation Authority’s strict education, training, and ethical standards and maintain competence throughout their careers. While there is no statutory requirement for specialist qualifications in lease-extension work, solicitors are professionally obliged to act only where competent and to provide a proper standard of service. Consumer protections include mandatory professional indemnity insurance, access to the Legal Ombudsman, and SRA enforcement powers.

The government and Parliament set the rules for financial services and decide which activities require official approval. These rules are detailed because financial products are varied and complex. The costs and benefits of bringing activities into the regulatory perimeter can be finely balanced, which is why the government is committed to regulating only where there is a clear case for doing so.