The Government has issued a response to the Housing, Communities and Local Government’s Select Committee report on Residential Leasehold Reform.

The Government agrees with the following measures recommended by the Committee.

  1. give clearer information to consumers on how to buy and sell leasehold properties;
  2. consider the Committee’s views on commonhold in light of the Law Commission’s report;
  3. work with developers on a standardised ‘key features’ document so consumers have clear details on the lease before they buy;
  4. remove any financial value from future ground rent;
  5. ensure the Law Commission is able to fully consider the application of unfair terms;
  6. update planning guidance to state there should be clear and transparent agreement between developers and local authorities on public areas and utilities to be adopted;
  7. consider the Committee’s recommendations on permission fees, major works (including a code of practice) and other charges in the light of Lord Best’s report;
  8. explore further the best means to challenge unjustifiable legal costs, including what changes to legislation are needed;
  9. explore legal changes to forfeiture by asking the Law Commission to update their work on forfeiture;
  10. extend mandatory membership of a redress scheme to all freeholders of leasehold properties;
  11. implement improvements to enfranchisement as soon as possible.

Further detail can be found in the Government’s response document.

We have recently reported on the Government’s proposed major changes to leasehold houses and ground rents.