Government moves forward with housing reform plans

The Association of Leasehold Enfranchisement Practitioners (ALEP) has expressed its strong approval for the recently published Draft Commonhold and Leasehold Reform Bill, highlighting its significance as a vital part of the government's ongoing efforts to modernise property tenure in England and Wales. The draft Bill aims to enhance the commonhold model, facilitating the conversion of existing leaseholders to commonhold if they choose to do so. Additionally, it seeks to prohibit leasehold usage for most new flats starting at a future date. The Bill proposes to cap ground rents at £250 per year and eliminate the enforcement powers linked to estate rent charges affecting freehold estates. A consultation period regarding commonhold is set to run until 24 April 2026.

Mark Chick, ALEP director and Senior Partner at Bishop & Sewell LLP, remarked on the anticipated nature of this draft legislation, stating, “This draft legislation is long-awaited, both by the industry and by the 5 million plus leaseholders in England and Wales. Reforming tenure structures may not attract the same attention as meeting housebuilding targets, but it remains a cornerstone of housing delivery.” He emphasized that the ownership structure is fundamental to how communities are organised and governed and stressed the need for practical, evidence-based reform developed collaboratively with industry professionals.

Chick welcomed the government’s consultation on commonhold, mentioning, “If commonhold is to succeed as a viable alternative to leasehold, its introduction must be practical, transparent and legally robust and this will require input from the wide range of professionals involved." However, he cautioned against the rush for reform, noting that “Rushed legislation rarely delivers clarity or certainty,” and underscored the lessons learned from the implementation of the Leasehold and Freehold Reform Act (LAFRA).

ALEP, which includes specialist solicitors, valuers, and managing agents, has called upon the Ministry of Housing, Communities and Local Government (MHCLG) to leverage the expertise of its members during the consultation process and beyond. The association proposed reviving the Commonhold Council or forming a similar advisory group to guarantee that real-world experience shapes the drafting of both primary and secondary legislation.

While acknowledging that implementing commonhold in new developments might be relatively straightforward, ALEP pointed out the complications of retrofitting this system across the existing housing stock. With over five million leasehold homes in England and Wales, any extensive conversion programme would necessitate careful phasing, adequate resources, and thorough communication with consumers.

Concerns around training have also surfaced, as ALEP notes that only a limited number of practitioners currently possess hands-on experience with commonhold. Chick insisted that “introducing commonhold at scale would require several days of structured training per practitioner,” translating to hundreds of hours across the profession. Without careful planning and significant support from key bodies like LEASE, the sector could face a capacity gap when clarity is paramount for leaseholders.

Concluding his remarks, Mark Chick stated, “This Draft Bill represents the most substantial shift in land tenure for more than two centuries. ALEP and its members are ready to contribute to the development of a system that delivers genuine long-term benefits for leaseholders, freeholders and the wider housing sector.” He reaffirmed ALEP's commitment to fostering constructive dialogue among government, leaseholders, and professionals within this intricate but vital area of property law.