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Labour to force vote on ending ‘feudal’ leasehold system – London Wallet

Mark Helprin by Mark Helprin
May 24, 2023
in Real Estate
Labour to force vote on ending ‘feudal’ leasehold system – London Wallet
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Michael Gove

Labour will force a vote on ending leaseholds, describing the watering down of the government’s pledge to abolish the system as a “scandal”.

Housing Secretary Michael Gove last week appeared to confirm reports he was dropping plans to abolish the leasehold system.

Gove is expected next month to announce a range of measures to protect the 10 million or so Britons who own their homes in a leasehold.

The measures are expected to include a cap on ground rents, more powers for tenants to choose their own property management firm and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute.

However, The Guardian reports that Gove will stop short of scrapping leaseholds altogether, despite a pledge made in January to end it this year.

He had previously promised to introduce legislation to “fundamentally reform” the system, which he had criticised as “feudal”.

Labour will on Tuesday bring forward a vote on a motion that would call on Gove to keep his promise “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”.

Shadow housing secretary Lisa Nandy commented: “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.”

A spokesperson for the Department for Levelling Up, Housing and Communities said: “We will bring forward leasehold reforms later in this Parliament, in line with our manifesto commitment.

“As the Secretary of State has made clear in the House many times, we remain determined in our promise to better protect and empower leaseholders to challenge unreasonable costs and make it easier and cheaper for them to extend their lease or buy their freehold.

“These build on the significant improvements we have already made to the market – including ending ground rents for most new residential leases.”

 

Government plans to scrap leasehold system dropped





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