Housing minister Matthew Pennycook said the reforms “mark the beginning of the end” for the “feudal” leasehold system
The government has announced plans to ban new leasehold flats to make commonhold the standard form of tenure, with millions of homeowners now expected to have greater control over their properties.
Housing Minister Matthew Pennycook said this reform “marks the beginning of the end” for the “feudal” leasehold system which often sees homeowners confronted with “unfair practices and unreasonable costs”.
Under the current leasehold rules, third-party landlords can own a building’s lease and make decisions on behalf of homeowners.
In an assertive move aligned with its election promises, the government now aims to scrap the leasehold model, allowing property owners greater control over how their buildings are run.
The upcoming changes will also relieve homeowners from additional financial burdens such as ground rent.
A Commonhold White Paper released on Monday (March 3) signifies a push to revitalise commonhold through a new legal framework, along with the sale of new leasehold flats prohibited.
Mr Pennycook declared: “This Government promised not only to provide immediate relief to leaseholders suffering now but to do what is necessary to bring the feudal leasehold system to an end – and that is precisely what we are doing.”
He further stated: “By taking decisive steps to reinvigorate commonhold and make it the default tenure, we will ensure that it is homeowners, not third-party landlords, who will own the buildings they live in and have a greater say in how their home is managed and the bills they pay.
“These reforms mark the beginning of the end for a system that has seen millions of homeowners subject to unfair practices and unreasonable costs at the hands of their landlords, and build on our Plan for Change commitments to drive up living standards and create a housing system fit for the twenty-first century.”
The Government is also “determined” to simplify the process for existing leaseholders to convert to commonhold.
A draft Leasehold and Commonhold Reform Bill, which will outline the specifics of the reformed commonhold system, is set to be released later this year by the Ministry of Housing, Communities and Local Government.
The legislation will affect England and Wales, where approximately five million homes are under leasehold.