§ Mr. CoxTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to review the freehold system as it applies to council tenants purchasing their council flat. [101603]
§ Mr. MullinWhen council tenants buy their flat, they buy a long lease, not the freehold. Leaseholders have the right to purchase the freehold of their block in certain cases. However, the right can only be exercised by a majority of residents. As most council blocks are occupied mainly by secure tenants, rather than leaseholders, many cannot meet this requirement.
The Government last year announced proposals to reform the leasehold system and to introduce commonhold. Commonhold will allow flats to be owned absolutely, but there will be rules to regulate the relations between flat owners to enable proper management of the block as a whole. Leasehold reform will, among other things, make it easier for leaseholders to buy a share of the freehold of their block. However, the right will still require a majority to exercise it.
The Government have taken a number of steps to help those who have bought a council flat, including allowing—and in some cases requiring—landlords to reduce high charges, and giving council and other leaseholders an easier way to challenge unreasonable charges.