The Association of Leasehold Enfranchisement Practitioners (ALEP) has welcomed the government’s new consultation on service charge and insurance transparency, while cautioning that the current pace and complexity of leasehold reform is creating challenges for both consumers and professionals.
The consultation, Strengthening leaseholder protections over charges and services, launched as part of the ongoing leasehold reform programme, will remain open until 26 September. It covers proposed measures around service charges, buildings insurance, litigation costs, and the regulation of managing agents.
Many of the planned reforms are set out in the Leasehold and Freehold Reform Act 2024 (LAFRA), which was passed more than a year ago but is still only partially in force. The measures come as the government also begins early consultation on its upcoming Leasehold and Commonhold Reform Bill, further adding to what ALEP describes as a shifting and increasingly complex legal landscape for leasehold enfranchisement.
In a recent member survey conducted by ALEP, concern was raised over the implications of the current environment. Half of the respondents said that clients were taking longer to make decisions about leasehold enfranchisement. A further 67% stated that the process of extending a lease had not become easier since the introduction of LAFRA. No respondents said the process had improved.
Additionally, 50% of ALEP members reported a decline in client work following the introduction of the Act. None reported an increase.
“We welcome the government consulting with the sector. We are encouraging our members, who represent both freeholders and leaseholders, to take part and respond to this important new consultation so that their voices can be heard,” said John Midgley, a director of ALEP.
