Julie James, Minister for Climate Change
The Leasehold Reform (Ground Rent) Act 2022 will bring to an end for new leases the poor practices surrounding the charging of high and escalating ground rents by reducing the ground rents in new leases to a peppercorn. The Act received Royal Assent earlier this year, following the approval of a legislative consent motion in the Senedd, and will be commenced on 30 June 2022.
To accompany the commencement of the Act, I am today publishing two guidance documents:
- Statutory guidance for local authorities in Wales, who are enforcement authorities under the Act; and
- General guidance on the Act for leaseholders, landlords and agents
The commencement of this Act marks a milestone in the journey to a fairer and more equitable system for leaseholders. However, I recognise the impact of the Act is limited to new leases and work continues to bring about more ambitious changes for existing leaseholders, as exemplified by the recommendations of the Law Commission in this area. As I have stated previously, my intention is that joint England and Wales legislation is made to address the recommendations of the Law Commission on Enfranchisement and the Right to Manage, as well as reinvigorating Commonhold as a viable alternative to leasehold. The UK Government remains committed to introduce further legislation during the current Parliament and I will continue to update Members as this work progresses.