“A Long-Promised” Bill to Ban Leasehold for New Homes Will Pass by General Election
Housing Secretary Michael Gove has announced a new bill to improve the leasehold system in England and Wales.
The main highlight of this bill is the ban on leaseholds for new homes, making it more affordable for homeowners to extend their leases or even buy their freehold.
However, the new bill will not apply to flats, which some people find disappointing.
Nevertheless, the bill will address issues such as high ground rent and expensive maintenance charges.
Gove said, “The long-promised legislation would mean leaseholders can take back control of their property and ensure service charges and ground rents are transparent and “reasonable”.
The news of this bill has been well-received by those who have campaigned for leasehold reform.
Approximately 5 million leasehold homes in England and 70% of them are flats.
Newly built houses sold as leaseholds have significantly decreased, from a high of 15% in 2016 to just 1% in December 2022.
Gove is “confident that the bill will pass in the next general election”, which will take place in 2024. Exciting times are ahead for leasehold homeowners, as this bill brings hope for a fairer and more transparent system.
“I’m absolutely confident this bill will be on the statute book by the time of a general election.
“It has widespread support in the House of Commons and the House of Lords, he said.
Some Conservative MPs are considering amendments to the bill that would eliminate leaseholds for new flats and houses.
Should this proposal come to fruition, the Labour Party has stated that they would support it.
Additional Measures
The government has outlined several measures alongside the bill.
One notable change is the extension of the standard lease from 90 years to 990 years.
This extension will provide leaseholders with greater security and peace of mind.
Additionally, the bill aims to address transparency concerns surrounding service charges.
It will require freeholders or managing agents to issue bills in a standardized format that can be easily challenged, ensuring greater clarity for leaseholders.
The bill will aim to simplify and reduce the costs associated with leaseholders taking over the management of their properties.
It will provide more control over their living arrangements.
Katie Kendrick, founder of the National Leasehold Campaign, said the bill was “long overdue” and its introduction to Parliament was “momentous”.
The new legislation will give some hope to leaseholders, as Kendrick states some of them feel “trapped.”
As a labour councillor in Cheshire, Kendrick said all parties had failed to address issues with leaseholders for decades and emphasized this bill passing swiftly.
