The property industry urgently needs a clear strategy and strong, consistent leadership from the next UK Government. As the nation prepares to go to the polls on Thursday 4 July Propertymark has examined the manifesto promises on housing from major parties to see what is on offer to voters who care about the future of our sector.

The Leasehold and Freehold Act received Royal Assent on 24 May 2024 and brought an immediate ban on most new leasehold houses. However, only four other sections of the Act are enforced which will come into effect on 24 July 2024.

The Leasehold and Freehold Reform Bill received Royal Assent and became law on Friday 24 May 2024. It was included as part of the 'wash-up', as the House of Lords dealt with Bills prioritised with cross-party agreement, following the announcement of the General Election on Wednesday 22 May 2024.

Propertymark has written to Housing Minister Lee Rowley, MP, to highlight a growing trend for insurers to decline or charge more for cover on properties that have been remediated within the funding limits provided by the UK Government, leading to more costs for hard-pressed leaseholders.

The Scottish Law Commission has opened a consultation on the Tenancy of Shops (Scotland) Act 1949, which deals with commercial lease renewals for retail, food and drink, hair and beauty and wholesale tenants. They are seeking the views of agents, tenants, and landlords on whether there is still a need for the Act, and whether it should be repealed, replaced, or reformed.

The Welsh Government has launched a new scheme to help support leaseholders in medium and high-rise buildings affected by fire safety issues in Wales. Launched on 10 May 2024, the scheme offers free and bespoke legal advice to help resolve potential disputes.

Over 30 Conservative MPs have written to Chancellor Jeremy Hunt expressing concern that plans for reform are being weakened as the Leasehold and Freehold Reform Bill progresses through parliament. In particular, and despite a promise in the 2019 Conservative manifesto, it is now expected that ground rents will be capped at £250 per year instead of being cut to zero.

Concerns were raised about the absence of central elements of the promised reforms when the Bill was first introduced to Parliament in November 2023. The UK Government said it would bring in amendments as it made its way through the Parliamentary process, but whilst a ban on new leasehold houses is now added, Housing Minister Lee Rowley, MP, stated restrictions on ground rent are still being considered.

If the Leasehold and Freehold Reform Bill becomes law, it’s expected that the sales market for leasehold properties will be reinvigorated. Leasehold is a complex area and can be intimidating for agents and consumers, so what are the fundamentals of the current situation, and how will this change if the Bill is introduced?

The UK Government should take advantage of the momentum in leasehold reform to stamp out ground rents, invigorate property sales, and promote professional management of leasehold property by qualified and regulated agents.

Matthew Pennycook, MP, has put forward an amendment which would lead to implementation of the Regulation of Property Agents working group report within 24 months of the Leasehold and Freehold Reform Bill becoming law, whilst Martin Boyd, Chair of the Leasehold Advisory Service, lent his full support to the statutory regulation of agents, stating that it is ‘simply wrong’ that there are no qualification requirements for private sector property managers.

The Welsh Government intends to build on changes made in 2018 when the use of some combustible materials in the external walls of high-rise residential buildings was banned. The current proposals look at a range of new materials to be covered, extend the types of buildings, include buildings between 11 and 18 metres in height and include new regulations about emergency systems and procedures.

Virgin Money, TSB and Skipton Building Society will now consider applications for properties in buildings that are yet to be remediated, or where leaseholders are protected from remediation costs, however, buildings that are excluded from such protections do not benefit.

The Leasehold and Freehold Reform Bill passed its Second Reading in the House of Commons on 11 December 2023 and was broadly welcomed with cross-party support, despite criticism that it does not go far enough.

There is a confirmed route to remediation for all buildings over 11 metres in Wales, with ten major UK developers already lined up to complete fire safety works. Alongside new cladding valuation guidance expected from the Royal Institute of Chartered Surveyors (RICS), these plans demonstrate to valuers and lenders that essential work can be carried out at no cost to leaseholders.

A ban on new leasehold houses and limits on ground rent for new flats are contained in the long-promised and eagerly awaited Bill, and for existing leaseholders, selling should be made quicker and easier.