Loophole in the BSA closed by the Levelling Up & Regeneration Act 2023

The Levelling Up and Regeneration Act 2023 received the Royal Assent on 26th October 2023. The government has finally closed the loophole in the Building Safety Act discussed by Mark Loveday at the ALEP conference.

Although rather clunky, a new section 119A introduces the wonderful concept of a “connected replacement lease”, which in 95% of cases simply means a lease extension under the Leasehold Reform Housing and Urban Development Act 1993: see s.119A(3)(b)(iii).

The Act (and the amendments to the Building Safety Act 2022 have not yet been published, but the new s.119A is already in force: see s.119A(5). The new s.119A is up on the Tanfield Building Safety Act 2022 hub.

Well done to ALEP for its campaign to “close the loophole”.