Leasehold Reform


BACKGROUND: In July 2017, the Department for Communities and Local Government launched a consultation on proposed reforms to the leasehold market in England, which included a ban on the sale of new-build leasehold homes and limiting ground rents to 'peppercorn' rates. 

These reforms could have a damaging impact on CLTs across the country. Leasehold enables CLTs to act as long-term stewards of housing, preserving its affordability for future generations. A third of all CLT housing completed to date has been completed under leasehold, and restricting the sale of new-build leasehold housing would impede the delivery of the 4500 new affordable homes currently in the CLT pipeline.

Our consultation response was submitted on 19 September 2017. This is available to  download at the bottom of this page. 


UPDATE: On 21 December 2017 the Communities Secretary, Sajid Javid confirmed that new measures to cut out unfair and abusive practices within the leashold system, including a ban on leaseholds for almost all new build houses would be going ahead.

The Government's response has recognised that exemptions will be required from the ban and is open to considering those in 'justifiable' cases - the response details CLTs explicitly when refering to such possible cases. 


OUR ASK: We are ​calling for an exemption for CLTs and Cohousing groups from the ban on leasehold and on ground rents. We are working with officials on this. ​Please see ​the most recent letter to the Minister for Housing, Dominic Raab MP, outlining this 'ask'. 

We will issue updates as and when we get more information.

Thank you to all those CLTs that also submitted consultation responses.