IRRV Alert - week ending 23rd July 2021
Information Letters
News
Circulars
Consultations
Reports
Lords votes on Leasehold Reform (Ground Rent) Bill (21 July 2021)
Lords votes on Leasehold Reform (Ground Rent) Bill
21 July 2021
JUL
21
2021
The House of Lords completed further examination of the Leasehold Reform (Ground Rent) Bill in report stage on Tuesday 20 July.
The purpose of the Leasehold Reform (Ground Rent) Bill is to set future ground rents to zero for new leases to make leasehold ownership fairer.
Detailed scrutiny
Report stage is an extra chance for members to closely scrutinise elements of the bill and make changes.
Proposed changes
Members put forward changes (PDF) to consider at report stage. Members speaking discussed subjects from the amendment list and voted on three changes to the bill.
Tenants
The first was on a change (amendment 9) to require landlords to let tenants know of upcoming changes to ground rents to try and prevent lease extensions before the changes in the bill are implemented.
Members voted 243 in favour and 238 against, so the change was made.
Removing ground rent
The second vote was on a change (amendment 26) which aims to ensure that the government introduces further legislation to remove ground rent for all leaseholders, whereas the Act currently only applies to newly established leases.
Members voted 219 in favour and 243 against, so the change was not made.
Financial impact
The final vote was on a change (amendment 27) to require a review of the financial impact of the Act and a recommendation as to whether a further extension of the ground rents ban could benefit existing leaseholders, especially those facing bills for fire remediation work.
Members voted 245 in favour and 256 against, so the change was not made.
Get involved
Watch or read
Catch up on Parliament TV or read a transcript in Lords Hansard.
Explore further information
Find out more in the House of Lords Library Leashold Reform (Ground Rent) Bill briefing.
Next steps
Third reading, a chance for members to make sure the eventual law is effective, workable and without loopholes, is yet to be scheduled.
What's happened so far?
Committee stage day two: Monday 14 June
Members put forward changes (PDF) (amendments) to consider at committee stage.
Members speaking discussed changes on a wide rage of subjects. For example financial penalties and banning orders for landlords who breach provisions in the Act, and a financial impact assesment of the Act to review whether a further extension of the ground rents ban could benefit existing leaseholders.
Find out about all the issues members discussed: catch up on Parliament TV or read a transcipt in Lords Hansard.
Committee stage day one: Wednesday 9 June
Members put forward changes (PDF) (amendments) to consider.
Members speaking discussed particular amendments on a wide range of subjects, including:
- provisions for retirement homes
- the financial impact of this Act for leaseholders
- extensions to leasehold contracts.
Existing leaseholders
Members also rasied concern about a lack of help in the bill for existing leaseholders (its measures provide for future leaseholders) or anyone who buys a lease with a ground rent before the bill's commencement date.
They questioned (with amendments) why the bill does not deliver government policy to enable leaseholders to buy out the ground rent without the need to extend the lease.
Find out about all the issues discussed: catch up on Parliament TV or read the House of Lords Hansard transcript of the debate.
Second reading: Monday 24 May
Members of the House of Lords discussed the key areas of the bill in the second reading debate.
Members expressed concern regarding ground rents and unreasonable service charges existing leaseholders are required to pay.
Catch up on Parliament TV or read a transcript of the debate in House of Lords Hansard.