What is Leasehold Reform?
On 30 June 2022, the Leasehold Reform (Ground Rent) Act 2022 came into force. The new legislation was the first step in the government reform package that aims to create a non bias housing system. The new legislation means that any ground rent cannot be charged at more than one peppercorn per year (which effectively sets the rate to nil). The ban will also apply to retirement homes, but this will not come into force until early 2023. The legislation will not apply to existing leaseholders, this in turn creates a two-tier market.
In June 2022 Michael Gove (Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations) reassured stakeholders, saying “There should be a bill to enact leasehold reform and enfranchise leaseholders in the next parliamentary session”. Take a look at the full clip below:
For more legislative updates click here