RFA response to the Leasehold and Freehold Bill announced in the King’s Speech

Responding to the King’s Speech, which detailed the provisions of the upcoming Leasehold and Freehold Bill, the RFA released the following statement:

“We welcome reforms of the leasehold sector which provide better quality, affordable and professionally managed housing, but the Government must ensure that legitimate investments and property rights are respected.

Retrospectively capping ground rents would be a totally unjustified interference with the legitimate property rights of freeholders and the pension holders who have invested in the sector. Even considering such proposals sends a very damaging signal to the institutions who see the UK as a stable and safe place to invest their money.

These proposals would drive professional freeholders from the market, a move which the Government’s own research suggests a majority of leaseholders are unlikely to be in favour of, given the consequences include greater responsibilities for the block stewardship and an increased cost burden being placed on residents. In fact, independent polling for the RFA has found that only 18% of current leaseholders would be comfortable assuming the legal obligations for managing their building.

Consumer choice in the housing market must be maintained, and it’s critical the Government consults with all industry stakeholders to ensure a leasehold reform Bill does not undermine property rights, impose unwanted obligations on consumers or delay the remediation of substandard buildings.”