REDDITCH MP Chris Bloore has welcomed major new government reforms to the leasehold system, describing them as a ‘long-overdue win for leaseholders’ that will cut costs, protect people’s homes and give homeowners greater control over where they live.
The reforms, set out in the draft Commonhold and Leasehold Reform Bill, will cap ground rents on existing residential leases at £250-a-year, with rents falling to a peppercorn after 40 years.
The changes are expected to save many leaseholders hundreds of pounds a year and thousands over the lifetime of their lease, while helping to unlock stalled house sales caused by punitive ground rent clauses.
The legislation will also abolish unfair forfeiture powers, ending the practice that can currently see leaseholders lose their home and all their equity over relatively small debts.
In addition, almost all new leasehold homes will be banned, with a clear and simpler route created for existing leaseholders to move to commonhold ownership, giving residents a direct stake in the ownership and management of their buildings.
Mr Bloore said: “Too many people in Redditch have been stuck in an outdated and unfair leasehold system that drives up costs and puts their homes at risk.
“Since I was first elected, constituents have raised this with me time and again and they were right to be angry.
“After years of talk and too little action, real reform is finally happening.
“Capping ground rents at £250 will cut bills and unlock home sales, while ending unfair forfeiture powers means no one should ever lose their home over a few hundred pounds of debt.”
More than 5million leaseholders and future homeowners across England and Wales are expected to benefit from the reforms.
The draft Bill will now move into pre-legislative scrutiny, with further engagement planned with leaseholders, industry and consumer groups.
Subject to Parliamentary timings, the ground rent cap could come into force later this decade.
