The Right to Manage (RTM) was introduced in 2002 giving flat owners the ability collectively TO take over the management functions in respect of their building without having to prove fault on the part of those responsible for management under their lease (usually their landlord) or paying a premium.
This article looks at the reforms announced so far around enfranchisement, the restrictions imposed on the sale of houses of a leasehold basis and the fees charged to leaseholders for essential information needed on sale are to be limited.
Yesterday’s King’s Speech confirmed that the Government intends to continue with further leasehold and commonhold reform legislation during the current Parliamentary session.
The speech itself contained only a brief reference to leasehold reform, stating: “My Ministers will bring forward legislation to increase long-term investment in social housing and to reform the leasehold system, including the capping of ground rents.”
However, accompanying Government briefings and subsequent ministerial commentary make clear that the proposed reforms are intended to go significantly further than the measures already contained in the Leasehold and Freehold Reform Act 2024 (LAFRA 2024).
