The government has moved from the realm of contemplation to the currently fantastic valley of decision, concerning the reform of ‘mediaeval leaseholds’ first introduced by the Normans, by announcing plans to implement several provisions contained in the Leasehold and Freehold Reform Act 2024 (Act).
Being implemented above includes provisions extending the right to leaseholders to manage more ‘mixed-use’ buildings. However, this announcement brings into sharp focus the enormity of what is proposed for leasehold reform by a government with little expertise in property law. For example, does the government understand the impact of the Building Safety Act (BSA) and other legislation, on the management of mixed-use buildings pulled into the BSA? If sophisticated management arrangements are in place to help maintain capital values and rental yields, how will the government change such structures without damaging freeholders’ interests? How will RTM changes contend with numerous ‘Accountable Person’ (AP) and ‘Principal Accountable Person’s (PAPS) requirements under the BSA?
The Property Lawyers Alliance has suggested to the Ministry of Housing, Communities & Local Government concerning all the reforms, the government consults widely, including establishing a permanent ‘Leasehold Forum’. Hopefully, this would avoid ‘over-legislating’ like with the BSA, which has caused so much delay in the residential leasehold market