Propertymark is calling on the government to put reforms in place to make it “more cost effective and simpler” for people to buy and sell leasehold properties in the UK.
In the King’s Speech earlier this month, the government said that it would introduce leasehold reform as part of its legislative agenda.
The former government managed to push through its Leasehold and Commonhold Reform Act before Parliament was dissolved. Measures in this made it easier and cheaper to extend leases but did not include a cap on ground rents.
Propertymark said that the draft Leasehold and Commonhold Reform Bill includes the Law Commission’s recommendations, including enhancing lease extension rights, ability to buy their freehold and take over the freeholder’s building management functions.
Other measures include revitalising commonhold by updating its legal framework, limiting the sale of new leasehold flats, regulating ground rents for current leaseholders, addressing unfair costs and implementing the Leasehold and Freehold Reform Act 2024.
Nathan Emerson, CEO at Propertymark, said: “Propertymark has long called for the process of buying and selling leasehold property to be reformed, and it is positive to see that the new UK government intends to provide leaseholders with more rights and protections over their homes, and that ground rents for current leaseholders will be regulated.
“However, key questions remain about the phasing out of leasehold on new flats, strengthening consumer protections through the competency of property management practices and ensuring that warranties and guarantees provided by home builders are consistent across the sector.”
Government needs to prioritise building on brownfield sites and grow building workforce
Another aspect of the King’s Speech that Propertymark wants further detail on is how the Planning and Infrastructure Bull will help meet the ambitious 1.5 million new homes target in the next five years.
The bill aims to simplify the consent process for infrastructure projects but reducing obstacles that can delay project approvals and unlock additional sites for development.
Other measures include funding nature recovery initiatives to ensure environmental protections are in place while developers build more homes, bringing in compulsory purchase compensations to reimburse landowners who may be impacted by new housing developments and modernising planning committees.
Propertymark said that to meet its housing target it would have to build a housing estate with over 1,150 homes every single working day.
Th trade body said that while it welcomed the “bold housing pledges” the government needed to clarify how it will gather a workplace large enough to build the homes.
It added that there should also be transparency around planned use of greenbelt land and a framework to prioritise brownfield and grey belt locations for development first.
Propertymark called for a “connected communities” approach to deliver affordability housing where demand is and to cater for community needs.
The trade body said: “There is an extreme need for full stakeholder engagement and insight driven strategies to ensure an ever-growing housing demand is equally matched by a sustainable supply of the right homes in the right areas at the right time.”
Emerson added: “While the new UK government clearly recognises the need for additional new homes by the end of this parliament, an aspect which is essential if they are serious about evening out house prices in the long-term, it will take well thought out and applied legislation to address the vast mismatch between ongoing demand and current supply.
“To meet the ambitious target of 1.5m new homes by the end of this parliamentary term, there must be a workable plan to deliver the equivalent of a new housing estate containing over 1,000 new homes every single day.
“Propertymark urges the new UK government to fully prioritise building on brownfield and grey belt sites ahead of constructing new homes on the greenbelt. We are keen to see full stakeholder engagement to help ensure the planning of such an enormous commitment brings clear benefits for generations to come.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
