Commonhold and Leasehold Reform Bill: Fix the foundations before you build the extension

"The Labour Government has today announced that it will be introducing the Commonhold and Leasehold Reform Bill. This ambitious legislation is expected to ban the sale of new leasehold flats, make Commonhold the default tenure and cap ground rent for existing leaseholders.

"Once implemented, there is little doubt that these changes will benefit leaseholders. However, Labour should not be surprised if this legislative promise is not received with unconditional enthusiasm.

"For many, this Bill will feel like déjà vu. We saw a similarly extensive piece of legislation announced by the previous Conservative Government in the King's Speech in 2023. While their Leasehold and Freehold Reform Act 2024 was eventually passed during the 'wash-up' period at the end of the last Parliament, the core provisions intended to make it 'cheaper and easier' to extend leases and buy freeholds have still not been put into effect.

"In a keynote speech to the Institute for Government in April, Matthew Pennycook confirmed that the 2024 Act is being delayed due to a 'small number of flaws' that should be rectified in this new Bill. He neglected to say exactly what these were, or why they couldn't have been resolved more promptly in other recent housing legislation, such as the Renters’ Rights Act.

"We are now approximately halfway through the current Parliament. There is no guarantee that such an extensive and contentious Bill will be both passed and fully implemented before the next general election.

"Leaseholders with short leases and high ground rents are suffering; in many cases they are stuck in flats they cannot mortgage or sell.

"Any leaseholder waiting for meaningful change may be forced to wait for this new Bill to run its course. This could be at the end of this Parliament, but could easily slip well into the next. At this point we may have a very different Government.

"Implementing the 2024 Act is an urgent repair to the shaky foundations of the existing system. This new Bill is a luxury extension distracting from the job at hand."

Homehold is on a mission to make the process of extending your lease as smooth, stress-free and affordable as possible.