Labour has once again reiterated its intention to end leaseholds, having previously described the watering down of the government’s pledge to abolish the system as a “scandal”.
Housing secretary Michael Gove previously promised to introduce legislation to “fundamentally reform” the leasehold system, which he had criticised as “feudal”, owed to the levying of hefty charges and a lack of transparency.
But abolishing leasehold have not formed part of a series of reforms introduced by the government.
The Labour Party has vowed to abolish leasehold in the first 100 days of government if it wins the next General Election.
Propertymark has welcomed Labour’s support to urge government to get on with urgent legislation to implement the Law Commission recommendations in full and ultimately phase out leasehold.
Timothy Douglas, head of policy and campaigns, said: “We are pleased to see the Labour Party join the campaign for leasehold reform. Policy makers must level the playing field with those who already own a leasehold property, make enfranchisement easier, simplify the process for lease extensions and where there is no managing agent, freeholders must sign up to a redress scheme.
“Furthermore, as with sales, lettings and managing agents, for developers, there are no minimum standards to work in the sector and there are no statutory rules to ensure those buying and selling property are suitably qualified.”
Finally… what every leaseholder has wanted to hear. Now, the Tories have the chance to make good on their promises in the King’s Speech.
There are in the region of 10 million leaseholder votes up for grabs.
When you are paying £000s in unjustified and egregious service charges and knowing you are being ripped off but feeling helpless because the law favours freeholders, and you are faced with being trapped in your home, unable to sell due to a lease stranglehold, and can’t buy or extend your lease due to the costs involved, there will be only one box on the ballot sheet where you will place your X.
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Or ensure the freehold is tenant owned……as governmental changes….in the UK…..dont usually end well. I hope I am wrong.
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It would be fairly simple to abolish NEW leaseholds. Update, correct & reinvigorate commonhold would deal with that in short order.
The problem is what to do with existing leasehold. That’s much more difficult.
Making the process of enfranchisement or lease extension easier could be quite simple. Making the process cheaper could also be fairly simple.
However, taking money away from a few very wealthy individuals/ companies who have the very best barristers is going to be way harder.
You also have to remember that a significant number of pension funds are invested in freehold ownership. It would be quite difficult for any government to justify damaging the savings of 40 million people just to protect 4 million.
I am an enfranchisement valuer who typically represents leaseholders, and have been waiting for the best part of 5 years to find out what will eventually happen. I very much hope that meaningful reform arrives that really does save leaseholders money. Not just in the process but also in the premium paid.
However, we only have to look at the disaster that has been The Building Safety Act to realise that it very hard to deliver leasehold reform.
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New leasehold houses have been banned. Freeholds have been relatively cheap and zero risk to purchase, and investors have more than made their money. It happened in Scotland, so no reason why it can’t in England & Wales. Perhaps, leaseholders can simply repay the freeholders initial investment. Regardless, it needs to happen because there is now excuse for leaseholders in England & Wales to remain under the freeholder yoke.
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