A recent question in the House of Lords has shed a little more ‘light’ on the government’s plans to implement the Leasehold & Freehold Reform Act 2024 (‘LFRA’), though the detail is conspicuous by its absence.
On 17 September, Conservative peer Lord Black of Brentwood, asked the government to provide details and timetables of their proposals for the implementation of the remaining provisions of the LFRA.
In a written answer the government’s Parliamentary Under-Secretary for Housing, Communities and Local Government, Baroness Taylor of Stevenage, confirmed that the government will implement the provisions of the Act to give leaseholders more rights, power and protections, but added that:
“The implementation of many of the reforms in the Leasehold and Freehold Reform Act 2024 will require a programme of secondary legislation. Any reforms to leasehold law are highly complex, and the government will take the time required to get those changes right.”
For further details see this link.
Leaseholders have now been waiting since late 2017 for the reforms that promised to make the process of extending their lease or buying their freehold easier, cheaper and faster. However, for those hoping for the swift implementation of the LFRA, it is certainly a case of ‘don’t hold your breath for imminent change.’
That Baroness Taylor’s statement is thin on detail is itself telling – the bulk of the reforms are clearly not going to be implemented in place any time soon, and perhaps this is no surprise as the previous administration acknowledged that some of these reforms would take a while to implement.
Perhaps there is some potential for some of the more straightforward provisions of the LFRA, such as abolishing the two-year rule, could be in place sooner. However, the secondary legislation required to bring in the majority of the provisions will certainly have to grapple with some of the more complex aspects of enfranchisement, including valuation reform, where the capitalisation and deferment rates still need to be set.
Questions around valuation reform are far from straightforward, and legislation will need to be carefully crafted, not only to ensure that it is fit for purpose, but also because reform will inevitably create winners and losers. Aspects of the LFRA are already being tested by freeholders in the Courts, and there is the potential for some further human rights challenges to be brought forward. Government will therefore need to consider its next steps scrupulously to ensure the taxpayer does not foot the bill for what could be considerable claims for compensation.
Baroness Taylor’s statement may not give much hope of a swift implementation of most the 2024 Act’s remaining provisions, but we can take some solace that the government will at least take stock before rushing in.
1.10.2024
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The above is accurate as at 07 October 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
