My Lords, I am really confused by the Government’s approach on this. It seems to be summarised as follows: “Give us this Bill as quickly as possible so that we can take as long as we can and as long as we like to implement it.” The problem is that there is a whole load of future leaseholders out there—and more importantly the marketplace, which believes that this lacks clarity.
Please do not take my word for it. I was reading a blog by Gary Murphy, an auctioneer on behalf of Allsop, which at the moment sells almost half of all
London ground rents traded at auction. He notes the intention for this to change over a very long period of time, in the Landlord and Tenant Act 1987, the Leasehold Reform, Housing and Urban Development Act 1993 and the Commonhold and Leasehold Reform Act 2002. He goes on to say:
“Before freeholders panic, and new investors smell blood, we have to remember that reforms in this area have been on the cards since 2017. Recent announcements have amounted to little more than a press release. Whilst effective in courting headlines, they have changed nothing for the immediate future.”
The critical issue is that the marketplace, which needs to be convinced the most that this change is imminent and about to happen, is even less convinced than the noble Lords from whom the Committee has heard this afternoon. Until it is this market will continue, even if it is traded at slightly lower reserves.
4.30 pm
The certainty of a date is, therefore, critical. That is why I was more than happy to put my name to the amendment, in the name of the noble Lord, Lord Blencathra, for it to come into effect as quickly as possible. It is funny that the noble Lord, Lord Young, and I took down exactly the same quote: we must make progress “as speedily as possible”. To do that, a clearly defined date is necessary, and not just for the leaseholders. The people in the marketplace neither trust nor believe that this is imminent and will happen. For that reason, I strongly support both amendments, particularly the one in the name of the noble Lord, Lord Blencathra.