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ARTICLE · 12 JANUARY 2018

How Will The Government's Crackdown On Residential Leasehold Impact Developers?

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On 21 December 2017, the Government published an eagerly awaited response to its July 2017 consultation on tackling unfair practices in the residential leasehold market.

CanadaReal Estate and Construction
Ashley Mitchell
Ashley Mitchell
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On 21 December 2017, the Government published an eagerly awaited response to its July 2017 consultation on tackling unfair practices in the residential leasehold market. The key announcements, billed by the Government in a strongly worded press release as a "crackdown" on "abusive" and "feudal" practices, are considered below.

The latest announcement forms part of the Government's commitment, set out in its 2017 white paper, to "fix the broken housing market". Much is still uncertain at this stage; legislation will be needed to implement the majority of the measures, which relate to England only.

No new long leases of houses

This is the flagship announcement and had been widely anticipated. It will apply to existing houses (e.g. those undergoing refurbishment) as well as new-builds. Like many of the Government's proposals, the ban will require legislation in order to be implemented. It is therefore not in force yet. While some developers had already taken

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