Reforming the leasehold and commonhold systems in England and Wales
Applies to England and Wales
Read the full outcome
Detail of outcome
The UK government’s and Welsh government’s consultation ‘Reforming the leasehold and commonhold systems in England and Wales’ considered Law Commission proposals for improving access to enfranchisement and the right to manage and reinvigorating commonhold.
The consultation received over 2,000 responses, demonstrating the strength of stakeholder interest in reform of the leasehold and commonhold systems.
This document provides a summary of responses to the consultation. It also provides the government’s response which includes confirmation of our commitment to legislate in the Leasehold and Freehold Reform Bill to increase the non-residential limit for collective enfranchisement and the right to manage to 50% and introduce a new right for leaseholders to require freeholders to take leasebacks of non-participating units as part of a collective enfranchisement claim.
We will also cap the total votes allocated to landlords in right to manage companies to one-third of the total votes of qualifying tenants (leaseholders).
We have also responded to the Law Commission’s recommendation for a 50% non-residential limit for individual freehold acquisitions and a number of their proposals to help reinvigorate commonhold, but these will not be included in the Bill.
Original consultation
Consultation description
We are consulting on a number of Law Commission recommendations that would broaden access to enfranchisement (buying the freehold) and the ‘right to manage’ a building. The proposals would increase the ‘non-residential limit’ from 25% to 50%, allowing leaseholders in buildings with up to 50% non-residential floorspace to buy their freehold or claim a right to manage. We are also considering recommendations that allow leaseholders to require that a landlord take on leases for any non-participating units following a collective enfranchisement; the introduction of a non-residential limit for individual freehold acquisitions; and changes to voting rights in right to manage companies.
On Commonhold, we are considering how shared ownership products could work in commonhold settings; and the provision of information for buying and selling a commonhold property.
The UK and Welsh governments have considered these Law Commission recommendations and agree in principle that these proposals would fulfil our stated aims to broaden access to enfranchisement and the right to manage and reinvigorate commonhold as a future tenure. We are consulting to ensure that those affected by these proposals have an appropriate opportunity to share their views on the impact of these changes before final decisions are made.
Documents
Updates to this page
Last updated 27 November 2023 + show all updates
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Added summary of responses and government response.
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First published.