Skip to main content

Commonhold Review

Volume 447: debated on Wednesday 14 June 2006

My noble Friend the Parliamentary Under-Secretary of State has made the following written ministerial statement:

“On 22 November my noble Friend the Lord Evans of Temple Guiting said that the Government were investigating the reasons for the slow rate of take-up of commonhold and considering whether it was necessary to hold a formal review. (Official Report, House of Lords, column 1496.)

After careful consideration it has been decided that a formal review into commonhold will not be undertaken. The commonhold legislation has introduced a major change to property ownership in England and Wales and will take time to make an impact. There are, however, indications that developers are starting to see how the benefits of commonhold can be applied to large scale projects. On 16 December 2005, proposals for a £500 million mixed-use commonhold, including up to 2,000 homes, were announced on behalf of the developer.

Work will continue on the development of the commonhold legislation and its promotion. In particular, our focus will be on increasing the flexibility of commonhold; on the provision of affordable housing in commonhold; and on the role of commonhold in creating sustainable communities. We intend to issue a consultation paper on draft regulations later in the year.

Since the implementation of commonhold in September 2004, work has been undertaken to make provision for commonhold in other areas so that:

The relevant provisions in the Disability Discrimination Act 1995 will apply to a commonhold premises as they apply to any other managed or let premises;

the constitutional documentation for commonhold associations can be brought in line with the reforms proposed in the Company Law Reform Bill; and

the Home Information Pack Regulations 2006 include provision for the sale of commonhold properties.”