The Government has indicated today that the proposed changes to ground rents and other reforms including an introduction to a newer form of commonhold will not be in place until late 2028
The proposed changes to make the Leasehold and Freehold Reform Act 2024 completely operational could take even longer
The following is from the following Government Website:
https://www.gov.uk/government/news/pm-were-capping-ground-rents-at-250
- The draft Bill will now move into pre-legislative scrutiny, expected to be carried out by the HCLG Select Committee. Subject to parliamentary timings, the ground rent cap could come into force in late 2028
- We are committed to working with all stakeholders through the pre-legislative scrutiny process, noting further engagement on appropriate treatment of quid pro quo leases (where the purchase price was demonstrably lower as a result of a higher level of ground rents) but being clear this is not an open door for exemptions
- The Leasehold Reform (Ground Rent) Act 2022 already ended ground rents for most new long residential leases going forward; this announcement focuses on tackling unfair and unaffordable ground rents in older leases
- The leasehold flat ban will apply to the purchase of residential homes. There may be some limited exemptions where leasehold may still be appropriate and this is the subject of consultation
- The Moving to Commonhold consultation has also been launched today to seek views on the detail of the ban so that there is a smooth transition to commonhold, considering when the ban should commence and the case for any exemptions so as to protect the delivery of new much needed supply