The UK government recently announced plans to abolish leaseholds, a form of tenure in which a tenant pays a landlord for the right to occupy a property for a fixed period of time. This move has been widely welcomed by tenants who have been subject to high ground rents and unfair terms. However, the question remains: how quickly can the government abolish leaseholds?
The answer to this question depends on a variety of factors, including the complexity of existing leasehold agreements and the speed at which new legislation can be passed. In terms of existing leasehold agreements, the government will need to consider how best to deal with existing contracts and ensure that tenants are not left in a worse position than they were before. This could involve introducing legislation that allows tenants to terminate their leases early or reducing the amount of ground rent they are required to pay.
In terms of passing new legislation, the government has already committed to introducing a new law that will abolish leaseholds. This law is expected to be introduced in 2021 and will include measures such as capping ground rents and introducing new rights for tenants. However, it is important to note that this is only the first step in abolishing leaseholds and it could take some time before the full effects are felt.
In addition to introducing new legislation, the government will also need to work with local authorities and housing associations to ensure that leaseholds are abolished as quickly as possible. This could involve providing financial support for tenants who are struggling to pay their ground rent, as well as providing advice and guidance on how best to terminate existing leases.
Overall, it is clear that the government is committed to abolishing leaseholds and that it is taking steps to ensure that this happens as quickly as possible. However, it is important to remember that this process will take time and that it will require a coordinated effort from both the government and local authorities. With this in mind, it is likely that it will take several years before leaseholds are completely abolished in the UK.