Government leasehold reforms spark concerns over complexity

The government’s consultation to boost leaseholder protections is creating unease among members of ALEP (the Association of Leasehold Enfranchisement Practitioners).

A member survey found that members are worried about the reforms’ impact with half reporting slower client decision-making on lease extensions.

Also, two-thirds noted that extending a lease has not become simpler since the enactment of the Leasehold and Freehold Reform Act 2024 (LAFRA).

Worryingly, 50% of members say they have seen a decline in client work, with no respondents reporting an increase.

ALEP members should respond

A director of the organisation, John Midgley, said: “We welcome the government consulting with the sector.

“We are encouraging our members – who represent both freeholders and leaseholders – to take part and respond to this important new consultation so that their voices can be heard.”

The reforms include focusing on clearer service charges, buildings insurance transparency and stricter regulation of managing agents.

Running until 26 September, the consultation introduces measures like standardised service charge forms, annual reports and limits on litigation costs.

Qualifications for managing agents

The government consultation will also explore mandatory qualifications for managing agents and digital service provision to cut costs while ensuring accessibility.

These changes, which are largely embedded in the Leasehold and Freehold Reform Act, build on reforms that remain only partially implemented over a year after the Act became law.

With the government also preparing the Leasehold and Commonhold Reform Bill, ALEP warns that the legal framework for leasehold enfranchisement is growing increasingly complicated.