Committee publication · Correspondence · 22 April 2026
Letter from Richmond Villages to the Chair dated 24 March 2026 concerning the draft Commonhold and Leasehold Reform Bill
From: Housing, Communities and Local Government Committee
Inquiry: Pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill
Summary
Richmond Villages, a major operator of Integrated Retirement Communities (IRCs) for older people, writes to express concern that the Draft Commonhold and Leasehold Reform Bill as currently framed creates uncertainty about tenure viability for new IRC developments. The organisation proposes a sector-specific, regulated 'Retirement Occupancy Lease' tenure with fixed management charges, operator financial stake, and consumer safeguards as a workable alternative to mandatory commonhold.
Key findings
- Richmond Villages argues that requiring commonhold for new IRC schemes would transfer legal and financial burdens to predominantly older homeowners, dampening investment in new communities
- IRCs operate a deferred management fee (DMF) model where residents pay lower monthly charges during residence and a disclosed fee on resale, spreading costs and allowing operators to manage major works and service quality
- The organisation proposes a 'Retirement Occupancy Lease' as a regulated, sector-specific tenure alternative featuring fixed transparent charges, operator long-term financial stake, updated contracts on resale, and mandatory disclosure and Ombudsman access
- Richmond Villages requests that the Committee include IRCs in pre-legislative scrutiny and recommend enabling provisions in the final Bill for this proposed tenure model
- The letter seeks clarity on timing to prevent pause in pipeline investment decisions for new IRCs due to legislative uncertainty
Tone
ProceduralTopics
Key actors
Florence Eshalomi MP, Richmond Villages, Bupa, Associated Retirement Community Operators (ARCO), Amanda Nesbitt
Notable line
“Requiring commonhold for new schemes would transfer those legal and financial burdens to predominantly older homeowners …”
Key Quotes
“Requiring commonhold for new schemes would transfer those legal and financial burdens to predominantly older homeowners, which we believe is neither realistic nor fair and would dampen confidence to invest in new communities.”
“We hear regularly from residents that they choose our villages precisely because they don't want the responsibility for arranging contractors, overseeing major repairs …”
“A practical way forward would be to enable a tightly regulated, sector-specific tenure for IRCs, often described as a Retirement Occupancy Lease, which modernises leasehold for this specific use-case.”
Source · parliament.uk record ↗