Labour will today bring a vote on ending leasehold, after reports
that the government has dropped plans to abolish the “feudal”
system that forces millions of homeowners to pay thousands of
pounds in extra charges.
There are around 5 million homes in England where families own
their house or flat through a lease, meaning they have to pay
extra costs to the building owner.
The government admitted that there was a need for “urgent reform”
as far back as 2017, and in January this year Housing Secretary
promised to scrap most
leaseholds in England this year.
But reports this month said that the plans had been dropped after
a row between Downing Street and the Department for Levelling Up
& Housing.
Today [Tuesday], Labour will bring forward a
parliamentary vote on a motion that compels the government
to keep their promise to the millions of people living in
leasehold properties by ending the sale of new private leasehold
houses, introducing a workable system to replace private
leasehold flats with commonhold, and enacting in full the Law
Commission’s recommendations on enfranchisement, commonhold and
the right to manage.
Last summer Labour called for a Leaseholder Reform Bill to end
the injustice of families lacking basic rights over their own
home.
The costs faced by these households often add up to tens of
thousands of pounds, including for ground rents, service charges,
and even changes to communal areas that residents don’t agree
with.
, Shadow Housing
Secretary, said:
“It is nothing short of a scandal that despite near-universal
agreement that leasehold is a feudal form of tenure that should
be a thing of the past, there is still no timetable for ending
leasehold on new builds and introducing a workable system of
commonhold to replace existing leasehold homes.
“We cannot have more delays or broken promises because of rows
within government.
“Today MPs from all parties can join Labour in voting to end the
leasehold system, implement the Law Commission’s recommendations
in full, and deliver long-overdue justice to millions of
families.”
Ends
Notes
On Tuesday 23 May Labour will force a parliamentary vote on the
following motion:
That this House notes the commitment by the Secretary of
State for Levelling Up, Housing and
Communities in January 2023 to abolish the feudal leasehold
system which he has acknowledged is an unfair form of property
ownership; calls on him to keep his promise to the millions
of people living in leasehold properties by ending the sale of
new private leasehold houses, introducing a workable system to
replace private leasehold flats with commonhold and enacting the
Law Commission’s recommendations on enfranchisement, commonhold
and the right to manage in full; and further calls on the
Secretary of State to make an oral statement to this House
by 23 June 2023 on his plans to reform
leasehold.
vows to scrap leasehold
system: https://www.thetimes.co.uk/article/michael-gove-vows-to-scrap-feudal-leasehold-system-this-year-920srddc6
Plans to abolish leasehold dropped after a row between Downing
Street and DLUHC:https://www.theguardian.com/money/2023/may/10/plans-abolish-feudal-leasehold-system-england-wales
The government said in February 2017 that “there are areas where
urgent reform [of leasehold] may be needed”: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/590464/Fixing_our_broken_housing_market_-_print_ready_version.pdf
Labour’s Plan
In June 2022 Labour called on the government to introduce a
Leaseholder Reform Bill to end the injustice of families lacking
basic rights over their own home: https://twitter.com/lisanandy/status/1534879894634737664
Labour’s Leaseholder Reform Bill would:
- End the sale of new private leasehold houses with immediate
effect.
- Set up a workable system to replace private
leasehold flats with commonhold.
- Give greater powers to residents in the interim over the
management of their homes.
- Give new rights for flat owners to form residents’
associations.
- Secure the right to extend a lease to 990 years with zero
ground rent at any time, or a cap on ground rents.
- Crack down on unfair fees and contract terms and give
leaseholders more rights of redress.
