The leasehold reform process has advanced with Housing Minister Matthew Pennycook signing regulations to remove the two-year ownership requirement for leaseholders of flats and houses. Effective next week, this change enables leaseholders to extend their lease or purchase their freehold immediately upon acquiring a property, aiming to provide greater flexibility and reduce costs.
However, industry experts and campaign groups assert that this measure is only a preliminary step. Linz Darlington, Managing Director of Homehold, described the change as "a drop in the ocean" and emphasized the urgent need for broader reforms to the lease extension process. He stated, "Hundreds of thousands of leaseholders are waiting for the promised changes to make lease extensions cheaper and easier."
The Leasehold and Freehold Reform Act 2024, which received Royal Assent in May 2024, outlines significant changes to the leasehold system. However, key provisions—such as those relating to the valuation process—remain unimplemented, with further consultations planned for this summer. This delay has drawn criticism from stakeholders and advocacy groups like the National Leasehold Campaign (NLC).
The NLC welcomed the latest action but reiterated the need for urgency. A spokesperson stated, "Without the valuation section of the Act being switched on, many leaseholders remain in a state of 'leasehold limbo,' unable to afford the inflated premiums and legal fees to buy their freehold or extend their lease." They urged the government to expedite these measures to prevent leaseholders from remaining trapped in the current system.
While the removal of the two-year ownership rule marks progress, there is mounting pressure on the government to deliver on its broader promises and enact the valuation reforms needed to make enfranchisement and lease extensions affordable for millions of leaseholders.
In a related development, Housing Minister Matthew Pennycook appeared on ITV's Good Morning Britain, where he faced criticism for evading questions on unrelated issues. During the interview, Pennycook declined to comment on the sentencing of Southport killer Axel Rudakubana, stating, "I'm not going to speculate on whether this sick individual will do that, or won't do that, or will try and resist doing so." This prompted frustration from viewers and hosts alike, with Susanna Reid responding, "Ok well I'm not sure that the judge would be affected by an interview with you, in terms of what he's going to do in sentencing."
