National Community Land Trust Network has persuaded the Government to exempt CLTs from the proposed ban on leasehold houses and ground rents, and the Law Commission has backed the Network’s proposals for an exemption from leasehold enfranchisement, recommending a change to the law.

Many CLTs (and other types of Community Led Housing groups) use leasehold to keep homes affordable in perpetuity and to finance and manage shared facilities. They also use ground rents to collect income for the use of their land and facilities.

The ability of leaseholders to “enfranchise” – that is, take full ownership – can undermine the CLT’s purpose. The Law Commission has adopted the Network’s long-held position that CLTs should be exempt from enfranchisement, and it will press the Government to adopt this.