Aspects of home ownership in the UK are set to change significantly. Why is this happening and what does it mean for homeowners?

Reforms are being introduced because many homeowners incur unjust expenses and have little control over their properties.  The changes that are planned could affect how millions of people buy, own and sell property.

What kinds of ‘changes’ are we referring to?

Ground rent is set to be capped at £250, stopping homeowners from paying excessive ongoing fees for no discernible benefit.

There will be greater rights for leaseholders, making it simpler and less expensive to extend a lease or purchase the freehold.

Owners of multi-occupancy buildings will be required to act with more transparency and communicate more clearly about service charge fees and the services they cover.  Leaseholders will have more capacity to contest excessive expenses.

It is likely that developers will be required to sell new flats as commonhold rather than leasehold. 

When will all this come into effect?

Subject to parliamentary approval, the Government is understood to be planning to implement the changes by 2028.

What does this mean for you?

As these changes take shape, your starting point as a homeowner should be to understand exactly what you own, and the basis on which you own it.  Check to see if your property is freehold or leasehold.  If it is leasehold, you should know how long is remaining of the lease term, and what ongoing costs apply. Being clear about the basics can save you a lot of uncertainty and stress.  It can also help you to make the right decisions for the future.

When you buy a property, consider more than just the purchase price. What appears at first glance to be a good deal may conceal long term fees, restrictions or limitations that will become apparent later on. Before making a commitment, ask the right questions to avoid future headaches.

The law is evolving to preserve the rights of homeowners, not to take them away. With a proactive approach and the right advice, homeowners can protect their positions and put themselves more in control.