Reform of leasehold is necessary and long overdue, particularly to address long-standing concerns raised by residents around costs, transparency, accountability and confidence in how their buildings are managed. The key question is whether the proposed model will deliver better outcomes in practice.
Our response focuses on how the model would operate in real-world settings, particularly in complex and mixed-tenure developments, which make up a significant proportion of new homes delivered in London.
We highlight a number of areas where further work is needed to ensure the model is workable and supports continued housing delivery. These include system readiness, the interaction with shared ownership, the management of mixed-tenure buildings, and the alignment between responsibility and decision-making.
We also set out the need for a phased and carefully managed transition, supported by clear frameworks for lenders, developers, managing agents and regulators.
We will continue to work with Government and partners across the sector to develop a model that delivers better outcomes for residents while maintaining the viability and delivery of new homes.