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Leasehold reform act 2022

Publish Date: 31 May 2022

By Jade Shrubsole

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Further reading

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• New legislation confirmed included that the Leasehold Reform Act 2022 will be coming into force on 30 June. Most significantly, this will stop landlords charging ground rent for new long residential leases. In addition, new leasehold houses will be banned, ensuring that all new houses built from 30 June must be freehold.

• The government also confirmed that the planning system will be reformed in order “to give residents more involvement in local development”

• To abolish Section 21 of Housing Act 1988, which the government claims will provide security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction” while also strengthening landlords’ rights of possession introducing new and stronger grounds for repeated incidences of rent arrears and reducing notice periods for anti-social behaviour.

• A new ombudsman for private landlords will also be introduced so that disputes can be resolved without the need to go to court, which is often costly and lengthy, and ensure that when residents make a complaint, landlords can take action to remedy.

• Introduction of a new property portal that will “help landlords understand their obligations”, give tenants performance information to hold their landlord to account, as well as aiding local authorities.

• Before the Queen’s Speech the government had been expected to announce a new crackdown on second homes but so far no concrete details have emerged. It had speculated that councils would be allowed to increase council tax by 100% on second homes that are neither used nor let out by their owners for at least 70 days per year.