Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will commit to a deadline on bringing forward legislative proposals to assist existing leaseholders.
Answered by Eddie Hughes
The Government remains committed to creating a fair and just housing system that works for everyone. We have already made great strides with the Leasehold Reform (Ground Rent) Act 2022, which will come into force from 30 June 2022. This Act is the first part of major two-part legislation this parliament to implement leasehold and commonhold reforms. In the next parliamentary session we will legislate to reform the leasehold system, including by supercharging leaseholders' ability to buy their freeholds, helping millions of households genuinely to own their own home.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, whether he has plans to abolish leasehold as a form of property ownership.
Answered by Eddie Hughes
Homeownership should provide people with far greater control over their homes and their lives. In the next Parliamentary Session we will legislate to reform the leasehold system, including by supercharging leaseholders’ ability to buy their freeholds and take control of their homes. For new builds, we will ban use of leasehold for houses. For flats we want to see widespread take up of commonhold so people can fully enjoy the benefits of true homeownership from the outset.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to introduce further legislation on leasehold reform.
Answered by Lord Greenhalgh
The Government remains committed to creating a fair and just housing system that works for everyone. The Government is taking forward a comprehensive programme of reform to improve fairness and transparency in the leasehold market.
The Leasehold Reform (Ground Rent) Act 2022 will come into force on 30 June. This means that landlords will be prevented from requiring a financial ground rent in most new long residential leases. We will also publish accompanying guidance for enforcement officers and consumers.
This is the first part of seminal two-part legislation to implement leasehold and commonhold reforms in this Parliament.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what plans he has to bring forward the leasehold reforms proposed by his Department in 2017; and for what reason a leasehold reform bill was not included in the Queen's speech.
Answered by Eddie Hughes
The Government remains committed to creating a fair and just housing system that works for everyone. We have made great strides with the Leasehold Reform (Ground Rent) Act 2022. From 30 June this year anyone buying a home on a new residential long lease will not be subjected to the annual costs of ground rent. This Act is the first part of major two-part legislation this parliament to implement leasehold and commonhold reforms.
In addition to the Ground Rent Act, thousands of existing leaseholders have also already seen a reduction in their inflated ground rent costs. The Competition and Markets Authority secured commitments from major homebuilders to remove lease terms that led to doubling ground rents, and where houses were sold as leasehold, to support leaseholders to buy the freehold at the original price quoted.
The government is committed to a comprehensive programme of reform to end unfair practices in the leasehold market. This is a long-term reform programme; it is complex, and it is important to get the detail right. As these reforms will be felt for generations, we are determined this work considers all the implications with care.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what plans he has to reform leasehold tenure in the 2022-23 parliamentary Session.
Answered by Eddie Hughes
The Government remains committed to creating a fair and just housing system that works for everyone. We will be taking forward a comprehensive programme of reform to end unfair practices in the leasehold market.
This starts with the Leasehold Reform (Ground Rent) Act 2022 which comes into force on 30 June. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.
The Government is committed to delivering the second phase of our major two-part leasehold and commonhold reforms within this Parliament. This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications and impacts with care.
Asked by: Andrew Selous (Conservative - South West Bedfordshire)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of leasehold reform on (a) levelling up and (b) the deliverability of Kings Cross-style regeneration projects.
Answered by Eddie Hughes
The Government is committed to creating a fairer and more transparent housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament. Leasehold and commonhold reform supports our mission to level up homeownership and promote true homeownership for all by addressing the power imbalance at the heart of the leasehold system and putting the power into the rightful hands of homeowners.
The Leasehold Reform (Ground Rent) Act 2022 (which comes into force on 30 June 2022) is the first part of leasehold and commonhold reforms in this Parliament. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. The impact assessment for the Act was published on 12 May 2021 and can be accessed via the Parliamentary Bills website ( https://bills.parliament.uk/bills/2864).
On 11 January 2022, the Government launched a consultation on a number of recommendations made by the Law Commission aimed at broadening the rights of leaseholders, and reinvigorating commonhold. We are currently analysing the feedback and we will provide a response in due course.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications and impacts with care.
Asked by: Andrew Selous (Conservative - South West Bedfordshire)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of leasehold reform on the UK insurance industry.
Answered by Eddie Hughes
The Government is committed to creating a fairer and more transparent housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament. Leasehold and commonhold reform supports our mission to level up homeownership and promote true homeownership for all by addressing the power imbalance at the heart of the leasehold system and putting the power into the rightful hands of homeowners.
The Leasehold Reform (Ground Rent) Act 2022 (which comes into force on 30 June 2022) is the first part of leasehold and commonhold reforms in this Parliament. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. The impact assessment for the Act was published on 12 May 2021 and can be accessed via the Parliamentary Bills website ( https://bills.parliament.uk/bills/2864).
On 11 January 2022, the Government launched a consultation on a number of recommendations made by the Law Commission aimed at broadening the rights of leaseholders, and reinvigorating commonhold. We are currently analysing the feedback and we will provide a response in due course.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications and impacts with care.
Asked by: Andrew Selous (Conservative - South West Bedfordshire)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of leasehold reform on investment in the UK economy.
Answered by Eddie Hughes
The Government is committed to creating a fairer and more transparent housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament. Leasehold and commonhold reform supports our mission to level up homeownership and promote true homeownership for all by addressing the power imbalance at the heart of the leasehold system and putting the power into the rightful hands of homeowners.
The Leasehold Reform (Ground Rent) Act 2022 (which comes into force on 30 June 2022) is the first part of leasehold and commonhold reforms in this Parliament. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. The impact assessment for the Act was published on 12 May 2021 and can be accessed via the Parliamentary Bills website ( https://bills.parliament.uk/bills/2864).
On 11 January 2022, the Government launched a consultation on a number of recommendations made by the Law Commission aimed at broadening the rights of leaseholders, and reinvigorating commonhold. We are currently analysing the feedback and we will provide a response in due course.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications and impacts with care.
Asked by: Andrew Selous (Conservative - South West Bedfordshire)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment his Department has made of the impact of leasehold reform on Britain’s high streets.
Answered by Eddie Hughes
The Government is committed to creating a fairer and more transparent housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament. Leasehold and commonhold reform supports our mission to level up homeownership and promote true homeownership for all by addressing the power imbalance at the heart of the leasehold system and putting the power into the rightful hands of homeowners.
The Leasehold Reform (Ground Rent) Act 2022 (which comes into force on 30 June 2022) is the first part of leasehold and commonhold reforms in this Parliament. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. The impact assessment for the Act was published on 12 May 2021 and can be accessed via the Parliamentary Bills website ( https://bills.parliament.uk/bills/2864).
On 11 January 2022, the Government launched a consultation on a number of recommendations made by the Law Commission aimed at broadening the rights of leaseholders, and reinvigorating commonhold. We are currently analysing the feedback and we will provide a response in due course.
This is a long-term reform programme; it is complex with many interdependencies and will take time to get the detail right. Once it is enacted the effect will be felt for generations and so we are determined this work considers all the implications and impacts with care.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, with reference to the Leasehold Reform (Ground Rent) Act 2022, from what date leaseholders will be allowed to extend their lease or buy their freehold.
Answered by Eddie Hughes
Under the Leasehold Reform Act 1967 (as amended) and the Leasehold Reform Housing and Urban Development Act 1993, leaseholders have statutory rights to extend their lease and/or buy their freehold. The Government remains committed to transforming the experience of leaseholders by making it easier and cheaper for them to extend their lease and/or buy their freehold.
We announced last year that the length of a statutory lease extension will increase to 990 years, from 90 years (for flats) and 50 years (for houses). Leaseholders will be able to extend their lease with zero ground rent on payment of a premium. We will also reform the process of valuation that leaseholders must follow to calculate the cost of extending their lease and/or buying their freehold. Our reforms will result in substantial savings for some leaseholders, particularly those with fewer than 80 years left on their lease.
The Leasehold Reform (Ground Rent) Act 2022, which comes into force on 30 June 2022, will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent. This is the first part of major two-part legislation to implement leasehold and commonhold reforms in this Parliament.