In a monumental stride toward housing reform, the government has revealed sweeping changes set to grant millions of homeowners in England and Wales unprecedented rights and protections over their properties. Spearheaded by Housing Secretary Michael Gove, the Leasehold and Freehold Reform Bill, unveiled in Parliament this week, promises to overhaul the leasehold system, marking the most substantial reforms in a generation.

Gove asserts that the bill’s multifaceted approach will simplify and reduce costs for leaseholders seeking to acquire their freehold, extend standard lease terms to an impressive 990 years for both houses and flats, and offer increased transparency regarding service charges. Moreover, the legislation aims to rebalance the legal cost structure and eliminate hurdles for leaseholders contesting unreasonable charges imposed by landlords through Tribunals.

Central to the reforms is the empowerment of leaseholders to assume management control of their properties, effectively liberating them from the decisions imposed by freeholders. Gove emphasizes a concerted effort to streamline this process, aiming for affordability and accessibility for leaseholders.

Furthermore, the government pledges additional reforms to expand access to redress schemes and facilitate easier transactions in selling leasehold properties. Gove highlights the bill as a pivotal step in rectifying longstanding disparities between leaseholders and freeholders, ensuring homeowners receive fair treatment, enhanced protections, and expanded rights within the housing market.

The Bill is anticipated to fortify and introduce new consumer rights for homeowners by:

• Facilitating cost-effective avenues for lease extension or freehold acquisition, ensuring greater security for homeowners.
• Extending standard lease terms to 990 years for both houses and flats, minimizing the hassle and expense of future lease extensions.
• Providing leaseholders with transparent service charge bills for better scrutiny and challenge.
• Enabling easier management takeover by leaseholders and reducing associated costs.
• Curtailing costs for leaseholders exercising their enfranchisement rights.
• Widening access to redress schemes for leaseholders to contest poor practices.
• Streamlining the buying or selling process of leasehold properties with predefined time and fee limits for information acquisition.
• Granting comprehensive rights of redress and transparency to homeowners on private and mixed tenure estates.

The reforms will notably extend rights to leaseholders in mixed-use blocks of flats, elevating their access to management takeover or freehold purchase. Additionally, the government aims to equalize rights for freehold homeowners on private and mixed tenure estates, aligning their privileges with those of leaseholders and ensuring transparency over estate charges.

The comprehensive reform package will rebalance the housing system for leaseholders by:

• Abolishing the presumption of leaseholders covering freeholders’ legal costs in challenging poor practices.
• Prohibiting opaque and exorbitant buildings insurance commissions, replacing them with transparent handling fees.
• Restricting the sale of new leasehold houses, with exceptions in exceptional cases.
• Eliminating the two-year ownership requirement for leaseholders seeking lease extension or freehold purchase.

The unveiling of these reforms marks a watershed moment for homeownership, signalling a fundamental shift towards fairer and more equitable housing practices for millions across the nation.