Many CLTs (and other types of community led housing groups) use leasehold to keep homes affordable in perpetuity, and to finance and manage shared facilities. They also use ground rents to collect income for the use of their land and facilities.
We support the campaign to end the abuse of leasehold and promote commonhold. But the reforms need to protect these ethical uses of leasehold by CLTs.
The Government has accepted some of our arguments. It has instructed Homes England not to give financial aid to projects with leasehold houses, but exempted community led housing from this ban. It has banned the collection of residential ground rents in new development, but clause 2 of the Act excepts ‘community housing leases’ including those where a CLT is the freeholder.
But further change is needed.
Our aims with leasehold reform are to:
PROTECT AFFORDABILITY
CLTs can retain freehold/leasehold arrangements in perpetuity
DEFINE CLH
A statutory definition of community led housing to underpin wider exemptions
reform COMMONHOLD
Making commonhold compatible with the CLT model.
The House of Commons Library has a useful background briefing on leasehold reform, with links to the various consultations by the Government and Law Commission on this issue in recent years.
We have also written our own briefing setting out why CLTs use leasehold, the current position for CLTs, and our position on leasehold enfranchisement and commonhold.
You can also read all of our detailed responses to the various consultations since 2017:
2023 Leasehold and freehold reform bill: call for evidence
Our submission of evidence to the Government’s consultation on implementing exemptions for reforms on existing leaseholds for community led housing.
Response to the proposal to restrict ground rent for existing leases
Our response to the Government’s consultation on implementing exemptions to reforms for existing leaseholds for community led housing.
2018 Leasehold reform consultation
Our response, jointly with UKCN, to the Govenment’s second consultation on implementing exemptions for community led housing.
2017 Leasehold reform consultation
Our response, jointly with UKCN and Locality, to the Govenment’s first consultation on banning ground rents and leasehold houses.
2019 Labour Party consultation
Our response to the Labour Party’s consultation on further reform to leasehold and commonhold.
Law Commission Leasehold consultation
Our response, jointly with UKCN, to the Law Commission’s consultation in 2019 on leasehold reform.
Law Commission commonhold consultation
Our response to the Law Commission’s consultation in 2019 on reforming the commonhold model.
Law Commission commonhold consultation
Our response to the Law Commission’s consultation in 2019 on reforming the commonhold model.
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