The Kings Speech revealed that the new Labour government plans to “bring the feudal system of leasehold to an end” and plans to “get Britain building again”.

23 Jul Labour and the Leasehold and Freehold Reform Act 2024

Posted at 00:00h in Litigation by

In our previous article, The Leasehold and Freehold Reform Act 2024: what you need to know we considered the important and material changes coming into effect following the Leasehold and Freehold Reform Act 2024 (the “Act”) receiving royal assent on the 24th May 2024.

Since then, the Kings Speech was delivered on the 17th July 2024 which provided for the new Labour government’s agenda in relation to the implementation of the Act.

The Kings Speech

As a starting point, the Kings Speech confirmed the implementation of the Act which was  originally constructed by the previous Conservative government and passed just before the general election.

The Kings Speech revealed that the new Labour government plans to “bring the feudal system of leasehold to an end” and plans to “get Britain building again”.

The Kings Speech included a draft leasehold and commonhold reform bill with the government confirming that draft legislation will be published soon. The government further confirmed that for those that are renting their home, legislation will be introduced to give them greater rights and protections, including the abolishment of no-fault evictions and reforming grounds for possession.

Ground Rent

Labour has said that it wants to tackle high ground rents and remove the “disproportionate and draconian threat of forfeiture as a means of ensuring compliance with a lease agreement”.

At present, some leaseholders are required to pay ground rent to cover the cost of occupying the land on which their leasehold property is built on. Statistics show that 86% of leaseholders pay ground rent, averaging almost £300 per year per leaseholder in England.

Originally there were some proposals by the previous government in relation to capping ground rents, however the proposals were never finalised. The latest legislation proposes “regulating ground rents for existing leaseholders so they no longer face unregulated and unaffordable costs.”

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