Over 12 months ago, the government announced imminent plans to reform leasehold in England and Wales and during this time, we have seen some developments and consultations that suggest that change is most certainly on the horizon.
Last week we saw the Leasehold Reform (Ground Rent) Act 2022 receive Royal Assent, which once legislation has been issued, will restrict annual ground rent on new long leases of flats and houses to the value of a peppercorn. However, a date or dates that the provisions of the Act will be brought into force are yet to be announced.
The Act is part of the government's plan to reform the future of homeownership and noted as the ‘biggest reform to property law in a generation’. To date, the government have highlighted that the scope of the bill was purposely narrow and further reform is planned. For the next seven days there is also an open consultation inviting homeowners and the real estate industry to share their views on the impact of the enfranchisement and commonhold reform, with responses requested by 22 February 2022. More details on the consultations can be found here.