Propertymark has welcomed the Government’s continued commitment to leasehold reform following measures outlined in the King’s Speech but warns that ministers must now provide clear timelines and avoid creating further uncertainty across the housing sector.
The trade body’s response comes after the Government confirmed plans to press ahead with a new Leasehold and Commonhold Reform Bill alongside a Building Safety Remediation Bill.
Both expected to play a major role in reshaping England and Wales’ housing market.
The proposed reforms are expected to include making commonhold the default tenure for new flats, capping existing ground rents, strengthening leaseholder rights and accelerating the remediation of unsafe buildings in the wake of the Grenfell Tower disaster.
PHASED REFORM
Timothy Douglas (main picture, inset), Head of Policy and Campaigns at Propertymark, says: “Propertymark welcomes the UK Government’s continued focus on leasehold reform as we support action to address longstanding issues within the leasehold system, including excessive ground rents, unfair charges and greater transparency for consumers.
“We now need to see these reforms progress at pace, with clear timelines and delivery, to provide certainty and confidence for consumers and the wider housing sector.
“We acknowledge the UK Government’s ambition to make commonhold the default tenure for new flats and to strengthen leaseholder rights.
“However, reform must be carefully phased to avoid market disruption and ensure existing leaseholders, property agents, and developers can transition effectively to any new system.
“Propertymark has consistently called for clearer standards, improved transparency around service charges, professional qualifications for property agents, and practical reforms that improve consumer confidence across the housing market.”
BUILDING SAFETY
The organisation also welcomed the Government’s renewed focus on building safety remediation, with ministers expected to introduce tougher enforcement powers and clearer responsibilities for unsafe cladding removal.
Douglas adds: “It is positive to see plans to accelerate remediation works and strengthen accountability for unsafe buildings. Leaseholders and residents have faced unacceptable delays and uncertainty for too long.
“The UK Government must ensure remediation funding, enforcement powers and clear legal responsibilities are implemented quickly so that affected residents are protected, and confidence can return to the housing market.”
HOUSING REFORM
The King’s Speech forms part of the Government’s wider legislative agenda aimed at housing reform, economic growth and infrastructure delivery.
Housing industry bodies have broadly welcomed the direction of travel, although concerns remain about how quickly reforms can be implemented and whether the transition away from leasehold can be achieved without disrupting the market.
Propertymark also reiterated calls for wider housing market reform, including reducing transaction costs and reviewing property taxation to help improve market mobility.
Douglas says: “Reforms to the housing sector can support economic growth and allow people to get on in life, but there must also be a much stronger focus on reducing and removing property taxation to make it quicker, easier and more affordable for people to move and get onto the housing ladder, while also helping to reduce cost pressures on landlords, which in turn brings down the cost of renting for tenants.
“Propertymark will continue to engage with policy makers and the UK Government to ensure the housing market works for all.”
