Lauren Fraser comments in Property Week on potential challenges in implementing the UK Government's draft Commonhold and Leasehold Reform Bill

Since the Government brough forward draft legislation for the Commonhold and Leasehold Reform Bill in January, the sector has been animated by debate over when and how to transition from leasehold to commonhold. 

The publication of the Housing, Communities, and Local Government select committee report on the Bill suggests some tweaks to the initial proposals of the Bill. For example, the report recommends bringing forward a £250 cap on ground rents to late next year, rather than 2028. It also advises cutting the transitional period for zero ground rents from 40 years to 20 and recommends the regulation of property agents.

What does the select committee's input mean for the implementation of the Bill's proposed changes? There are potential risks from expediting the application of these changes, which could have knock-on effects for the housing sector.

Lauren Fraser, Senior Associate in our Real Estate Disputes team, comments in Property Week and considers how rushing through legislation could be a backwards step:

Changes on this scale require time, care and attention if there is to be any hope of achieving a smooth transition. There remain a number of areas where further detail and consideration are needed, particularly around the position of non-participating leaseholders in buildings that convert to commonhold.

Rushing legislation of this complexity risks producing poorly drafted law that could harm the very stakeholders it is intended to assist: leaseholders. The uncertainty and disruption that could follow may lead to a further loss of confidence in the residential leasehold market.

Read the full article in Property Week here (subscription required).