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 reform leasehold to end the abuses. But the reforms need to protect these ethical uses of leasehold by CLTs.

We’ve successfully lobbied the Government to exempt CLTs from the proposed ban on leasehold houses and ground rents.

Now we want a change to the law to exempt schemes from leasehold enfranchisement.

The ability of leaseholders to “enfranchise” – that is, take full ownership – can undermine the CLT’s purpose. The Law Commission has adopted our long-held position that CLTs should be exempt from enfranchisement, and we will press the Government to adopt this.

We will return to our Leasehold campaign in winter 2021.

Our aims with leasehold reform are to:

PROTECT AFFORDABILITY

Legal protections to keep CLT homes affordable in perpetuity

DEFINE CLH

A statutory definition of community led housing to underpin wider exemptions

reform COMMONHOLD

Making commonhold compatible with the CLT model.