Leasehold and Freehold Reform Bill: RPC Opinion (Green-rated)
Regulatory Policy Committee opinion on DLUHC's Leasehold and Freehold Reform Bill IA
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The RPC produces opinions of impact assessments (IAs) to help departments ensure that the evidence and analysis in them is sufficiently robust. We provide an independent opinion to assist final ministerial decision making and parliamentary scrutiny of regulatory proposals. We publish these to assist parliamentarians and to ensure that they are available to external stakeholders. Government departments are expected to submit IAs to the RPC in time for the RPC to issue an opinion before the relevant legislation is laid before Parliament.
The Leasehold and Freehold Reform Bill was introduced to Parliament on 27 November 2023.
The bill proposes to: amend the rights of tenants under long residential leases to acquire the freeholds of their houses; extend the leases of their houses or flats, and to collectively enfranchise or manage the buildings containing their flats, to give such tenants the right to reduce the rent payable under their leases to a peppercorn; and to regulate charges and costs payable by residential tenants.
The RPC has rated the IA as fit for purpose (green-rated). The RPC has, however, made a number of comments to improve the IA:
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The Department should extend its assessment to include medium-sized businesses
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Further explanation as to why the current regulations are insufficient in achieving the policy objectives.
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Include scenario analysis illustrating the impact of different levels of pass through from freeholders to leaseholders.
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more-comprehensive mapping of the impacts on all groups.