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Housing: Owner Occupation

Answer

My Department receives representations from a wide range of interests, including from freeholders (landlords) and leaseholders, about residential leasehold. Residential leasehold is a long-established way of owning property in England and Wales. We have no plans to abolish the leasehold system.The Government recognise however the need to strike the correct balance of rights and responsibilities between landlords and leaseholders. It is important that landlords and managing agents as well as other businesses operate in a socially responsible manner. As with all regulation, state intervention should be proportionate, seeking to raise standards where there is bad practice, and avoiding unnecessary burdens across the leasehold sector.In general, we believe that the current legislative framework can deliver that balance, if matched by an increasingly pro-active and positive approach by the professionals in the sector. I am, however, aware of some specific concerns, particularly in the retirement sector where there is an ongoing OFT investigation. We will, however, keep a close watching brief and will not rule out making changes in future if that proves necessary.Commonhold is a new tenure introduced in 2004. Issues concerning commonhold are a matter for the Ministry of Justice. The Government have no plans to alter the commonhold legislation and intend that commonhold will remain a voluntary alternative to long leasehold ownership for flats and other interdependent properties.

Secondary information

Type

Written question

Reference

41519; 526 c6W

Session

2010-12

Subjects

Leasehold Regulation

Link

View this Written question on www.publications.parliament.uk