Leasehold campaigners have welcomed the prime minister's pledge to bring forward legislation before Christmas, but warned that homeowners will judge the government on delivery. Speaking at the Labour Party Conference, prime minister Andy Burnham promised a Bill before Christmas for what he described as "long overdue Leasehold Reform". He told leaseholders that "the days of you being squeezed for every penny are coming to an end".
Commitment follows draft bill
The commitment follows publication of the draft Commonhold and Leasehold Reform Bill earlier this year. The proposals include making commonhold the default tenure for most new flats, capping ground rents and replacing leasehold forfeiture with a new enforcement regime.
The government has also confirmed plans to introduce independent regulation of property agents. Agents would need a licence and appropriate qualifications to operate, while the regulator would have powers to withdraw licences where standards are not met.
Leaseholders are entitled to be sceptical
The National Leasehold Campaign (NLC) welcomed the latest commitment but said the government now needed to turn its promises into legislation. Katie Kendrick, co-founder of the NLC, said: "The prime minister has now made a personal promise to millions of leaseholders. That matters. But after years of consultations, delays and missed deadlines, leaseholders are entitled to be sceptical.
"We welcome the commitment to introduce the bill before Christmas, but the Government missed an opportunity to reaffirm its commitment to ending leasehold altogether and replacing it with commonhold.
"Leasehold remains one of the biggest consumer scandals in modern Britain. Millions of homeowners are still paying excessive charges, facing unfair practices and lacking control over their own homes."
The government has previously said it intends to bring the leasehold system to an end during this Parliament. Its proposals would ban leasehold for most new flats and make commonhold the default tenure.
Warning over property agent regulator
Kendrick also said the detail of the proposed property agent regulator would be critical. She said: "Any regulator must be genuinely independent, properly funded and equipped with real enforcement powers. It cannot become industry self-regulation dressed up as reform.
"Leaseholders should not be expected to pay for the policing of an industry that has failed them. Managing agents should fund their own regulation, not pass the cost back to consumers."
The government has yet to set out the regulator's structure, funding model or implementation timetable. It said further details would follow.
Kendrick added: "The prime minister has set a deadline. Leaseholders will now expect the Government to meet it.
"But ministers must also provide a clear roadmap for delivery, accelerate implementation of the Leasehold and Freehold Reform Act 2024.
"Reform cannot become a process of making leasehold slightly less unfair. The goal must remain its replacement."
