Letting Leasehold go: Incremental changes again under Labour?

In late November 2024, the government has pledged to overhaul the leasehold system in England and Wales by the end of the current Parliament, moving towards commonhold ownership. Leaseholders currently face high ground rents and service charges, with some trapped in exploitative arrangements.

Again, this appears to be a step by step set of incremental changes?

Housing Minister Matthew Pennycook outlined a timetable for reform:

• January 2025: Scrapping the rule preventing leaseholders from extending leases or buying freeholds within the first two years.
• Spring 2025: More leaseholders in mixed-use buildings can take over management, and they won’t have to cover freeholders’ legal costs in disputes.
• Late 2025: Plans to ban new leaseholds will be outlined.

Ministers will also consult on easing challenges to unfair service charges and requiring landlords to get court approval before passing legal costs to leaseholders.

The changes can’t come soon enough for those struggling under the current exploitative system. Some elements of the Leasehold and Freehold Reform Bill won’t be implemented due to identified flaws.

While the changes apply to England, the government will coordinate with Wales.

Scotland does not have leasehold tenure, and Northern Ireland has very few leasehold properties.