Moved by
Baroness Fox of Buckley
84: After Clause 69, insert the following new Clause—
“Marketing of residential leasehold property
(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations to regulate the marketing of residential leasehold property.
(2) Regulations under subsection (1) may—
(a) require residential leasehold property without a share of the freehold to be marketed and sold as “lease-rental”,
(b) require that residential leasehold property without a share of the freehold be advertised with a disclaimer containing the words that “leasehold is a lesser title and management and service charges at this property are controlled by a third-party entity that is not subject to democratic resident control”,
(c) provide information about the rights and responsibilities of leaseholders and landlords under a long lease to be given to prospective home buyers by sellers and property agents in the form of a document produced by the Secretary of State or another person,
(d) require sellers and property agents to clearly state material information, including lease length, ground rent and service charge, in the marketing of residential leasehold property,
(e) define “prospective home buyers”, “sellers” and “property agents”,
(f) provide that the document to be given is the version that has effect at the time the requirement applies, and
(g) specify cases where the regulations do not apply.
(3) Regulations under subsection (1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”
Member’s explanatory statement
This amendment would provide for a scheme to regulate the marketing of residential leasehold property. The scheme involves requiring leasehold homes without a share of the freehold to be marketed and sold as “lease-rental”, which adopts a key recommendation of the leasehold report by the House of Commons’ Levelling Up, Housing and Communities Committee, published on 11 March 2019.