Long-awaited legislation to abolish England’s “feudal” leasehold property system will be published in the second half of next year, the government has confirmed in a major update for the millions of people affected.
In a Written Ministerial Statement (WMS), housing minister Matthew Pennycook gave the first details of how quickly Labour intend to axe the controversial form of homeownership, as promised in their manifesto.
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The minister said there will be a consultation and white paper early next year to get the plan in motion, with the aim to make commonhold “the default tenure” by the end of parliament in 2029.
The news has drawn a mixed reaction from those caught up in the system, with some hailing an end in sight and others saying it is too little too late.
What is leasehold?
Leasehold is a centuries-old form of tenure that is unique to England and Wales. People who buy their home with a lease buy the right to live there for a given number of years but don’t own the land itself, regardless of whether it is a house, or a flat in a building.
That is the preserve of the freeholder, who can charge expensive ground rents simply for owning the land, as well as service charges for the maintenance and insurance of the properties.
There have long been concerns around leaseholders being exploited, especially by unregulated managing agents who are typically contracted to oversee the day-to-day running of buildings and can charge large fees on any works they arrange.
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