Millions of leaseholders in England and Wales face rising service charges and ground rent, leading to stress. The government plans to ban new leasehold flats, replacing them with commonhold, where residents collectively own and manage their buildings. However, challenges remain, including developer reluctance and potential legal battles.
Housing minister Matthew Pennycook has said outright abolition of the leasehold system in England and Wales would be 'almost certainly impossible', rejecting claims the government is rowing back on Labour's election promises. In a speech at the Institute for Government, he said the government would 'dismantle' the system by making it easier for leaseholders to convert to commonhold, but acknowledged the process would take time. The draft bill would ban new leasehold flats and cap ground rents at £250 annually.
Housing minister Matthew Pennycook has said outright and immediate abolition of the leasehold system in England and Wales would be 'almost certainly impossible', rejecting accusations the government is dragging its feet on reform. The government will instead 'dismantle' the system before the next election by making it easier for leaseholders to convert to commonhold ownership, banning new leasehold flats and capping ground rents at £250 a year. Critics including the Green Party and campaign group Free Leaseholders have accused Labour of rowing back on election promises.
