The Renters (Reform) Bill has been dropped whilst the Leasehold & Freehold Reform Bill has passed.
The Leasehold and Freehold Reform Bill was the final piece of legislation to pass before Parliament closed ahead of the General Election on July 4 whilst the Renters (Reform) Bill did not make it, and was dropped completely.
Major reform of leasehold and freehold rules become law just before the door closed on any new legislation due to the General Election on July 4th.
The Leasehold and Freehold Bill was one of the only law changes that made it through the ‘wash-up’ in Parliament before the General Election.
The new law introduced:
- A ban on leaseholds for new houses
- Extending the standard lease term to 990 years
- The removal of marriage value. This will save leaseholders with less than 80 years on their lease thousands of pounds in lease extension fees.
What was left out:
- A cap on ground rent.
- Agency regulations as part of the legislation
- The prevention of forfeiture, a draconian measure that allows a freeholder to repossess a flat for a debt of just £350.
Secondary legislation could be introduced to bring in a ground rent cap and improve the law but that will depend on the new Government’s priorities.
Most of the changes which have been included will not come into effect immediately, or even within a specified timeline.
The Renters (Reform) Bill
The Renters (Reform) Bill was dropped completely before Parliament wound up which means, the expected ban on Section 21 ‘no fault’ evictions will not now become law (although Labour has pledged to deliver this if the party wins the election).