Angela Rayner, Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, has committed to introducing leasehold reform legislation within the current parliamentary year. Speaking at the Housing, Communities and Local Government (HCLG) Committee, Rayner emphasised the government’s aim to make commonhold the default tenure for new-build flats. This system allows flat owners to collectively manage their buildings, offering an alternative to traditional leasehold arrangements.
Rayner acknowledged gaps in the Leasehold and Freehold Reform Act 2024, which banned the sale of most new houses under leasehold tenure but excluded flats. "We want to ensure there are no unintended consequences as we push this forward," she said. The government plans to publish a commonhold white paper and launch a consultation on banning leasehold flats within months.
Committee chair Florence Eshalomi highlighted the challenges faced by leaseholders, describing their experience as a “nightmare.” Rayner responded by affirming the Labour government’s commitment to resolving these issues. Propertymark, a leading industry body, welcomed the announcement, praising the government’s efforts but urging clarity on plans to address potential court backlogs related to ending Section 21 “no-fault” evictions.
Beyond leasehold reform, Rayner reaffirmed her determination to meet the target of delivering 1.5 million new homes by the end of this parliament. This goal is supported by the upcoming Planning and Infrastructure Bill, set to be introduced in March. However, Rayner acknowledged that even meeting this ambitious target would only make a small dent in the UK’s housing needs.
As momentum builds, stakeholders such as retirement developer McCarthy Stone have expressed support for commonhold ownership, which aligns with international flat-ownership systems seen in the US and Australia. With leasehold reform and housing development high on the agenda, the government aims to address the housing crisis and empower homeowners across England and Wales.
