“We welcome the promise of a Leasehold and Freehold Bill and the reforms that will bring; it covers a lot of ground.
We were disappointed that ground rents have not been tackled directly today, but understand this is a complex area so welcome the opportunity to consult to find the right solution. Ground rents have already been abolished for new homes; so it is crucial for these rents to be capped or abolished for the 5 million existing leasehold homes. Leaseholders will benefit by reducing the annual cost and making it cheaper to extend. It's not right that leaseholders are forced to make these artificial payments and receive no service or benefit in return.
But the government’s reforms fall short of breaking homeowners free from the shackles of leasehold completely by still allowing the sale and purchase of leasehold flats in the future. This Bill has the opportunity to put a stop to – as Gove referred to it himself – an outdated feudal system. We will continue to campaign for commonhold flats and a ban on leasehold.
Our other major concern about the Bill is Parliamentary time. With over 20 Bills announced today, we need to see a draft Bill by Christmas – otherwise these reforms remain fiction and leaseholders continue to suffer. Leasehold reforms could be a significant legacy left by this government to improve the quality and equity of homeownership across the UK. Let's hope the government has the courage to see it through."
