Labour urged to deliver on leasehold reform promise as political pressure mounts
Labour politicians are stepping up pressure on Sir Keir Starmer’s government to finally deliver long‑promised reforms to the residential leasehold system in England and Wales. Deputy Labour leader Angela Rayner has urged the Prime Minister to honour the party’s manifesto commitments by bringing forward legislation that would cap onerous ground rents and overhaul the current leasehold model, which critics describe as outdated and unfair.
Rayner highlighted the financial strain faced by millions of leaseholders, many of whom are burdened with escalating, unregulated ground rent charges that can make properties harder to sell or remortgage. She has specifically called for a statutory cap on ground rents for existing leaseholders, emphasising that the government must prioritise working homeowners over wealthy investor interests lobbying against change.
The proposed reform package - originally outlined in earlier government plans - includes ending the sale of new leasehold flats, strengthening protections on service charges, and simplifying the process for lease extensions and collective enfranchisement. However, publication of the draft leasehold reform bill was delayed late last year amid concerns from Treasury officials about potential knock‑on effects on investor confidence and pension fund portfolios.
Labour backbenchers have expressed growing frustration at the delays, warning that failure to deliver on leasehold reform undermines public confidence in the government’s housing agenda. With an estimated five million leasehold homes in England alone, the political spotlight on leasehold reform is intensifying, driven by both grassroots leaseholder hardship stories and broader debates about fairness in the housing market.
Industry professionals should expect continued political debate ahead of the leasehold bill’s introduction to Parliament - and prepare for significant legislative change that could reshape how leasehold property is owned, managed and regulated in the coming years.
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