In March 2020, emergency legislation helped to assist with the Covid-19 Pandemic situation that faced many of those in rented accommodation. However, no such assistance was given to leaseholders to assist with payment of their service charges, ground rent or payments arising from their leases. Many homeowners have found difficulties, and are likely to still face further difficulties in complying with their leasehold obligations as set out in their leases. In the absence of any legislative changes or concessions, many homeowners are worried about losing their home or investment property.

In a move welcomed by leasehold campaign groups, the Competition & Markets Authority (CMA) is investigating four of the UK’s largest household builders about how leaseholds are being sold. Buyers have complained about being caught in a leasehold trap, with rising ground rents and unfair fees. In September 2020, the CMA requested information from the developers. The CMA has made clear that any findings of mis-selling or unfair contract terms won’t be tolerated.

Residential leases often contain clauses which require tenants not to do something to their property. Such restrictions may include not altering the property, not subletting or keeping carpets on the floor. These restrictions are known as covenants and can sometimes be deemed to be absolute i.e. there is no caveat in the clause which allows for a reasonable request to be considered by the landlord. Without the landlord’s confirmation that these clauses have been relaxed, a tenant would need to strictly obey an absolute covenant. If a covenant is relaxed, then this may be recorded in the form of a licence.

The new Electrical Safety Standards in the Private Sector (England) Regulations 2020 is a new requirement effective from 1st July 2020. This is a further Regulation set by Parliament in the continued efforts to ensure tenant safety. Whilst most landlords adhere to such requirements without the need for regulations, there are nonetheless some landlords who disregard the safety of a tenant, and fail to maintain the minimum standard within their let property.

Trecarrell House Limited v Rouncefield (2020) EWCA Civ 760  The Court of Appeal recently made an important decision for landlords…