Government Consultation on Major Reforms to Leasehold Housing

Tuesday 25 July 2017

The Government has proposed significant reforms to the leasehold housing market, in a far-reaching consultation paper published today by the Department for Communities and Local Government.

DCLG's proposals include placing new restrictions on the sale of new-build leasehold housing, and limiting the ground rents that freeholders are able to charge. The consultation is open for responses until 17 September.

These proposals could have a significant impact on community land trusts, at the very moment the community-led housing sector stands ready for rapid growth. Leasehold is commonly used by CLTs, as a means of ensuring that new homes remain permanently affordable for their local communities.

The National CLT Network will be responding to the consultation, and encourages CLTs to also set out any concerns they may have with the proposed reforms. 

Catherine Harrington, Director of the National CLT Network, said:

"Leasehold works well for many community land trusts across the country, allowing them to help people access home ownership while ensuring that housing remains genuinely affordable in perpetuity. We welcome the Government's commitment to stamping out abusive practices by the big developers, but it shouldn't stop communities from coming together to build the affordable housing they so badly need."

"The National CLT Network is urging the Government to reflect the distinctive needs of community land trusts in its reforms to leasehold. Community land trusts are playing a key role in building a fairer housing market, but to do that they need to be exempted from these one-size-fits-all proposals."

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