A bit of Context
The RFA continues to promote the leasehold system as a modern and dynamic form of tenure, which should remain a choice for residents across the UK.
Since 2017, members of the RFA have consistently called for increased regulation and awareness of existing statutory rights within the leaseholder community to address the real concerns of leaseholders including transparency across the sector. We maintain that a regulated leasehold system, underpinned by integrity, professionalism and competence of freeholders, can deliver the highest standards for residents.
About the Campaign
Whilst there has been much Government time dedicated to reforming the sector, most recently with the Leasehold and Freehold Reform Act 2024, this has not delivered meaningful reform addressing the real issues for leaseholders – most noticeably rising service charges, promoting good practice and long-term effective stewardship of buildings.
In line with some of the Law Commission’s recommendations, we believe there are many measures – such as the regulation of freeholders and managing agents – which could be implemented to achieve more effective changes for leaseholders.
The RFA has also expressed its continued support for the recommendations outlined in Lord Best’s report to regulate managing agents, to make them more accountable.
We stand ready to work with the new government to raise enforceable standards across the leasehold sector. This includes reaffirming support for the introduction of an industry statutory code of practice – which RFA members first proposed to the previous government for adoption in 2018. This would deliver immediate results in ousting bad actors from the margins of the sector and ensure high standards of management and compliance across the industry.
Future reforms
The RFA is clear that any future reforms to the sector must ensure leaseholders feel empowered by being fully aware of their legal rights and can rely on an effective complaints framework. Any reforms must also ensure mortgage lenders can have confidence in the future condition of the assets underpinning their loans.
To ensure a properly functioning leasehold sector, the legitimate property rights of professional freeholders’, who have invested within the sector, must be protected. Professional freeholders provide independent stewardship and long-term security to leaseholders that would otherwise be lacking in commonhold or self-managed buildings.
If future legislation does not respect these rights, it could cause professional freeholders to become insolvent, the consequences of which would include higher rates of dilapidation, stagnation of building and fire safety remediation projects and a significant increase in uninsured buildings.
The RFA urges the government to deliver balanced reform, working with all stakeholders, which does not cause unintended consequences for leaseholders, as well as the housing industry.
