Latest updates on leasehold reform

The Department for Levelling Up, Housing & Communities is consulting on a number of Law Commission recommendations that would broaden access to collective enfranchisement and right to manage.

The proposals would increase the non-residential limit from 25% to 50%, allowing leaseholders in buildings with up to 50% non-residential floor space to buy their freehold or claim a right to manage. The government is also considering compulsory leasebacks for non-participating units. On commonhold, consideration is being given to how shared ownership products work in commonhold settings and on the provision of information for buying and selling a commonhold property.

The consultation will close on 22 February 2022.

Secondly, the long awaited Supreme Court decision in the Settlers Court RTM case was handed down today (12 Jan). The landlord’s appeal was successful and the court held the management powers conferred under a right to manage claim are confined to the subject building and not to any wider Estate facilities on a multi block development.  As a consequence, the Court of Appeal judgment in the case of Gala Unity Ltd v Ariadne Road RTM Co Ltd, concerning the same point, was held to be wrongly decided. See the press summary which includes a further link to the full judgment.

FirstPort Property Services Ltd (Appellant) v Settlers Court RTM Company and others (Respondents) [2022] UKSC 1

On appeal from: [2019] UKUT 243 (LC)

How we can help

If you would like to talk to us today, please get in touch with Anna Favre.