ALEP Welcomes the Next Stage of Leasehold Reform
But warns an increasingly complex legal environment impacts on both consumers and professionals
In a further stage of leasehold reform, the government has announced a consultation (Strengthening leaseholder protections over charges and services) on service charge and buildings insurance transparency, litigation costs and regulation of managing agents. The consultation period runs until 26 September.
The majority of the proposed changes are contained within the Leasehold and Freehold Reform Act 2024 (LAFRA) which, despite having been passed over a year ago, is only partially implemented.
They form part of a set of leasehold reforms which are being rolled out as the government also begins to consult on its imminent Leasehold and Commonhold Reform Bill, creating a complicated and ever-changing legal context for leasehold enfranchisement.
In a recent survey, ALEP members expressed concern about the impact of change on both consumers (those wishing to extend their lease and those considering buying a leasehold property) and their own pipeline of work. In a recent survey, 50% said that the speed at which clients were taking decisions on leasehold enfranchisement had reduced; while 67% said that the process of extending a lease had not become easier following the enactment of LAFRA (none said that it had become easier).
Furthermore, 50% said that client work had decreased since the introduction of LAFRA; none said that it had increased.
Commenting on the recent announcement, John Midgley a director of ALEP (the Association of Leasehold Enfranchisement Practitioners) said:
“We welcome the government consulting with the sector. We are encouraging our members – who represent both freeholders and leaseholders – to take part and respond to this important new consultation so that their voices can be heard.’’
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