Boodle Hatfield Property Insights, June 2023 - Flipbook - Page 1
Boodle Hatfield
Property Insights
June 2023
Leasehold Reform
Leasehold reform may at times have seemed low on the
list of government priorities, leading some to question
the considerable time and energy spent to date reviewing
the various consultation papers and statements outlining
proposed reforms.
Indeed, in our Spring Insight we reported on the
announcement from Michael Gove, Secretary of
State at the Department for Levelling Up Housing and
Communities outlining an intention to abolish the
“feudal” leasehold system with proposals to achieve this
to be outlined in the King’s Autumn. It was therefore
somewhat of a surprise to all, just three months later, to
read a further ministerial announcement that saw these
proposals side-lined and leasehold seemingly given a
reprieve.
Where does this announcement leave leasehold reform?
To have abolished leasehold completely and to have
introduced and introduced a new tenure in the form of a
reinvigorated commonhold in such a short period would
undoubtedly have been chaotic and possibly counterproductive and would quite possibly have led to significant
disruption and uncertainty for all those familiar with the
current leasehold system. However, whilst we still have
relatively little detail as to what is planned and exactly
when it will happen, leasehold reform is still on the
government agenda, albeit less radical than envisaged
at the start of the year, with the first significant reforms
being set out in the Renters’ Reform Bill discussed further
below.
Simon Kerrigan, Property Partner
Renters Reform Bill
The Renters Reform Bill was published amid much
fanfare in May of the year. Will the Bill live up to its billing
as the ‘biggest shake-up of the private rental sector for
30 years’ comprising ‘a once in a generation reform to
deliver safer, fairer and higher quality homes’ forming
part of the commitment to ‘bring in a better deal for
renters’?
The Bill reflects a desire to protect private residential
tenants against ‘rogue’ landlords perceived to be acting
unreasonably or unfairly following a period where there
has been much focus on the poor condition of some
rental properties and the use of ‘no fault section 21
notices’ to end tenancies where a tenant complains
about the condition of their property or rent increases.
The Bill is currently being debated in parliament and could
therefore be significantly revised before coming into
force. However, on first sight, the proposals are relatively
wide ranging and would indeed trigger significant reforms
to the current rental system,
•
The headline reform is the proposed abolition of
the so called “no-fault” section 21 notice evictions
meaning that it will no longer be possible for a landlord
to evict a tenant simply because it wants to do so,
with eviction only possible if one of the statutory
grounds can be proved. This will go some way to
protect tenants where, for example, a landlord faced
with a tenant making a legitimate request for repairs
or maintenance to a property may suggest that the
tenant “put up or move out”. On the flip side, landlords
will be provided with more comprehensive statutory
grounds to recover their property where tenants are
at fault, but will only be able to evict a tenant in what
is described as “reasonable circumstances”.
•
Another key reform is the introduction of a simplified
residential tenancy structure where all tenancies
will be continuous periodic tenancies, rather than
coming to an end on notice after a fixed period
as is the current practice. This will be a welcome
reform for tenants wanting the security of a long
term home, with the ability to put down roots in the
local community and school system, without the
