The government has promised big changes to make buying and selling leasehold properties simpler and cheaper. But what does it mean for you?

In the recent King’s Speech, the government pledged to overhaul the leasehold system, aiming to give leaseholders more control over their homes. This follows years of campaigning by groups like Propertymark, who argue the current system is too complicated and costly.

Here’s a breakdown of what’s on the table:

Easier lease extensions: No more battling with freeholders! The government wants to make extending your lease simpler and cheaper.

Right to buy your freehold: Tired of ground rent? You could have the right to club together with your neighbours and buy the freehold of your building, giving you more control.

Capping ground rent: Those pesky annual charges could be a thing of the past, with the government considering capping ground rents for existing leaseholders.

New leasehold flats banned? The government is looking at limiting the sale of new leasehold flats, pushing for more freehold ownership instead.

Protecting your rights: Plans include measures to ensure property management companies are competent and that new-build warranties offer consistent protection.

Building boom or bust?

The government has set a bold target: building 1.5 million new homes over the next five years. That’s the equivalent of a housing estate with over 1,150 homes every single working day!

To achieve this, they’re introducing the Planning and Infrastructure Bill, designed to speed up the process of getting building projects off the ground.

Here’s how they plan to do it:

• Fast-tracking infrastructure: Simplifying the approval process for essential infrastructure projects, like new roads and utilities, to prevent delays.
• Brownfield first: Focusing on building on disused or derelict land (brownfield sites) before considering greenfield sites.
• Compulsory purchase powers: Streamlining the process for acquiring land for development, while ensuring fair compensation for landowners.
• Boosting the workforce: Addressing the shortage of skilled construction workers to keep pace with the ambitious building targets.

Propertymark, while welcoming the ambition, is urging the government to provide greater clarity on several key issues:

• Green belt protection: How will the government balance the need for new homes with protecting valuable green spaces?
• Affordability: How will they ensure that a sufficient proportion of new homes are genuinely affordable for ordinary people?
• Connected communities: Will new developments be well-integrated with existing communities, with access to essential services and amenities?

The success of these ambitious plans hinges on the government’s ability to address these concerns. Only then will we know if this is the start of a brighter future for homebuyers and sellers, or just another pipe dream.