Despite several manifesto commitments promising since 2017 to reform the outdated leasehold system, a system which favours high service charges, high ground rents and a lack of basic rights for people buying leases, the Conservatives have still failed to enact any reforms.  

An estimated 4.8 million leasehold homes currently exist in the UK. Leaseholds favour big property owners over those people and families trying to get on the housing ladder, forcing them to pay extortionate extra costs just to keep their properties.  

Toby has been contacted by a number of constituents affected by issues with leaseholds including issues with service charges, ground rents and, more recently, issues around cladding.    

Commenting on Labour’s proposals, Chesterfield MP Toby Perkins said:  

“The Conservatives have dithered and delayed at every turn to rip up our unfair and outdated leasehold system, which financially punishes hard-working people for no reason other than to benefit wealthy freeholders.”  

He added: “This Government’s record on housing, as with so many other areas, consists only of breaking promises and meaningless platitudes. That’s why I’m proud to support Labour’s alterative to genuinely reform our housing system, making it fairer and easier to buy homes.”   

Labour’s Shadow Secretary of State for Levelling Up, Housing and Communities Lisa Nandy stated during the parliamentary debate this week:  

“For so many people in our country, what they thought would be the reward from years of hard work, and the realisation of their dreams of homeownership, are shattered by the reality of what it means to be a leaseholder.”   

In contrast, Labour have committed to carry out the recommendations of the Law Commission to overhaul our arcane leasehold system by implementing:  

• An end to the sale of new private leasehold houses at the point the Bill comes into force with its provisions applied retrospectively to December 2017 and a workable system to replace private leasehold flats with commonhold.   
• Greater powers for residents over the management of their homes, with new rights for flat owners to form residents’ associations and a simplification of the Right to Manage.   
• The right to extend a lease to 990 years with zero ground rent at any time; or a cap on ground rents when extending a lease to 0.1% of the freehold value, up to a maximum of £250 a year.   
• A crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges, and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies.