The housing market consisting of two levels will be the result of lease repair plans for semi -baked lease Harry Scofen
R.The leasing system in England and Wales needed demolition since the Middle Ages. He closes homeowners, especially those who are in apartments, in an exploitative relationship similar to the policing with a free holder who possesses property rights and management for them.
The free holder can take advantage of this imbalance in force, and with the support of the law, forcing the tenant to pay the amounts of extortion in rental and services fees. The previous one is a batch that does not give any benefit or service to the tenants, as it is entitled to honor for the superior legal rights of his weld. Historically, a trivial amount, the land has been leased in recent years to blackmail more money from individual tenant owners. Very destroyed ground rents in 2022, Parliament issued a law Block them on new homes.
Al -Hurra holder also appoints a building management company to deal with maintenance, with funding from the service fees imposed on flat owners. In practice, this can lead to the inconsistency of exorbitant interests and drawings. If the tenants fail to meet the payment demands over 350 pounds, they can face their home without compensation. The threat of the confiscation forces of the tenants to pay feasible fees – sometimes for services that have not been received.
I have seen the tenant’s exploitation directly. My mother’s service fees increased to its free holder to 33,000 pounds annually, as the building of non -lifting deteriorates and the houses become unchanging.
Hamptons I found this in 2023 aloneThe tenants in England and Wales paid a penalty of 7.6 billion pounds in service fees. Study 2011 by which? The estimated tenants were shipping by 700 million pounds each year through the enlarged service fees. A modern government Impact evaluation This number is very low due to the sector’s growth. The expansion of the increasing awareness of the exploitative nature of the Leasehold gap in the price between homes and apartments. This gap is now in 30 years height With buyers, they are unwilling to become financially hostage.
The new government Shared white paper Promises to ban rental for future apartments. The new “Commonhold” apartments, which is a democratic structure where each owner owns free ownership to its unit, and through a company, has a share of the land with their neighbors. Workers’ holders will appoint their administrative agent and collectively decide how to spend their money. It will be free of ground rents and the risk of confiscation.
However, the government has not committed to providing a guaranteed path to the subscriber for millions, such as my mother, already in rented apartments. The proposals expect the tenants to obtain free ownership before transferring to Commonhold. However, the process of purchasing free ownership, and often costs tens of thousands of family pounds. The government suggested that this would not change, saying, “The cost is likely to be important.” The Labor Party ruled out the government -backed loans to transfer the subscriber, which is a specialty Recommending the Law Committee.
Beyond the cost, many tenants are prevented from buying free ownership because of The imposed restrictions By conservatives in the nineties. The Labor Party appears to be appointed to repeat these exceptions in its rules regarding who can obtain free ownership and turn into Commumold. This includes the absence of a legal right for tenants to purchase their free share retroactively if they do not participate in the process of buying the original free ownership with their neighbors, either because they were unable to buy or have not yet purchased. Another exclusion harms tenants in the structural connected apartments to commercial buildings such as the store.
Under the proposals, even qualified tenants who believe in the majority support to the Communeoldwon group are not completely free of tenants. Currently, the process requires 100 % support from tenants, lenders and free home holders. Although the government indicates that it will reduce the threshold of participation to 50 %, and to ensure that only tenants decide, Pure Commonhold will not be secured unless each tenant votes and pays it in advance.
Given that this is almost impossible, Commonhold will coexist with tenants inside individual buildings, which may lead to expensive management, opponents and even litigation. Why does a policy recognized by the government itself “may be worse than the tenant who replaced him?”
The government’s semi -bakery intervention risks the creation of a new market of two levels, divided between the brilliant XonHold apartments and the old stock of rented debt traps. Elsewhere in the world, including in Scotland, the bodies have democratic self -time without third -party owners; It is time to expand these rights to the rest of the United Kingdom – this means that the joint forces for many, not just new.