We can't abolish leasehold outright, minister says
Summary
The UK housing minister said it is not possible to end the leasehold system immediately but the government plans to make reforms to help leaseholders gain control over their buildings. The proposed changes include making it easier to switch to a system called commonhold, banning new leasehold sales for flats, and limiting ground rent fees.Key Facts
- The minister said ending leasehold outright is “almost certainly impossible” due to legal and practical reasons.
- Leasehold means owning the right to live in a property for a set time but not owning the building outright.
- Many leaseholders face high service charges they cannot control.
- Labour’s 2024 election promise was to end the leasehold system by the next election through gradual reforms.
- The draft leasehold bill aims to allow easier conversion to commonhold, where owners jointly manage their buildings.
- The bill would ban new leasehold flat sales and cap ground rent at £250 a year.
- The minister expects the new commonhold framework to be ready before the Parliament ends in 2029.
- Campaign groups call for clearer reform timelines and faster action for leaseholders.
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