Change in the leasehold sector has been a long time coming. On 21 July, the Law Commission published three reports which seek to give leaseholders an interest which they can finally, and confidently, call ‘ownership’.
The case for reform
Dissatisfaction with residential leasehold as a model for homeownership is not new. As far back as 1884, there have been attempts to introduce reforms that will improve the lot of residential leaseholders, and to redress the power imbalance with landlords. 136 years and over 50 bills later, dissatisfaction remains rife. That is because leasehold, on a fundamental level, is an inherently inappropriate means of providing homeownership. It is a system which enables the landlord to benefit from the features of leasehold that cause homeowners the most hardship. As a time-limited interest, the homeowner’s asset ‘wastes away’ and reduces in value over time and, in so doing, increases the value of the landlord’s asset. And while homeowners expect to control the decisions
