The government has set out plans to end ‘feudal’ leasehold system
Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “Leasehold can work, but it is outdated, open to abuse, and offers none of the protections and benefits that Commonhold would, effectively creating second class homeowners. We are absolutely behind the government on their direction of travel.
“Planning minister, Matthew Pennycook made the announcement yesterday morning (3 March 2024), citing the need to “drive up living standards and create a housing system fit for the twenty first century”. He also championed efforts to “make it easier for leaseholders to buy their freehold or extend their lease.”
The Commonhold White paper sets out:
- New rules that will enable commonhold to work for types of developments, including mixed-use buildings and allowing shared ownership homes within a commonhold.
- Greater flexibility over development rights.
- Giving mortgage lenders greater assurance, such as mandatory public liability insurance
- Strengthening commonhold building management.
Rico Wojtulewicz, head of policy and market insight at the NFB and the House Builders Association (HBA), commented: “HBA members fully support the move away from leasehold and have proactively identified where commonhold might need attention, for example on infrastructure adoption and maintenance cost, particularly on roads, drainage, and the environment.
“Commonhold could also help the government meet their housing targets. When people feel they have a real stake in their building, consumer confidence in dense, tall buildings, essential for delivering supply in our cities, will increase and projects will have enough buyer interest in them and therefore be viable enough to build.”