Even more concerns have been raised over the practical delivery of leasehold reform with industry figures warning that key elements of the legislation remain unclear as parliamentary scrutiny continues.
The Association of Leasehold Enfranchisement Practitioners (ALEP) has written to the Housing, Communities and Local Government Select Committee highlighting technical issues it says must be addressed if reforms are to work in practice.
The body has called for greater transparency around the Leasehold & Freehold Reform Act 2024, particularly where known flaws are already delaying the rollout of key provisions.
Among the issues flagged are uncertainty over valuation mechanisms, delays to consultation on key rates and the risk that too much detail is left to future regulation rather than being set out clearly in primary legislation.
UNRESOLVED ISSUES
ALEP also warned that the relationship between leasehold reform and commonhold proposals remains unresolved, raising concerns about fairness, cost and how the system will operate for both leaseholders and freeholders.
Mark Chick (main picture, inset), ALEP director and senior partner at Bishop & Sewell LLP, says: “Reform in this area is both necessary and welcome, but it needs to be operable. The legal and valuation framework must be clear enough for leaseholders, freeholders and professional advisers to understand how the system will work in reality.
“Where government has identified flaws or intends to rely on further regulations, those points should be visible and open to scrutiny now rather than after the event.”
“The key is very much in the detail.”
He adds: “While the prospect of leasehold reform is politically attractive in headline terms, its ultimate success in delivery depends on the technical aspects.
“As we have seen with LAFRA, when it comes to the law relating to enfranchisement, the key is very much in the detail. We welcome the chance to continue our dialogue with government during the course of this bill to ensure workable outcomes for all involved.”
