Government Is Steadfast On Reforming Leasehold Despite Resistance

The Leasehold and Freehold Reform Bill will receive its third reading on Tuesday and Government remains steadfast on its commitment to reform, vowing to strengthen the Bill despite backlash from some Tory MPs.

A leaseholder is a tenant who has paid to live in a property for a select period of time, and often includes apparent homeowners. Government data suggests long-term leaseholds usually last between 99-125 years.

Once the agreement ends, the property returns to the landlord, who owns the home and the plot of land. Government data suggests there are almost five million leasehold properties in England, which makes up 20 per cent of the current housing stock.

Key amendments to the Leasehold and Freehold Reform Bill which have been put forward by MPs from across the House include an end to forfeiture and providing leaseholders in flats with a share of the freehold.

Owning a share of the freehold on a leasehold flat allows the tenants to collectively have a stake in the freehold of a building. This in practice can allow tenants to extend their leases more cheaply.

Forfeiture is a way a landlord can evict their tenant if they break a part of the leasehold contract, which can include failing to pay ground rent. A new amendment put forward by Matthew Pennycook, Labour's shadow housing minister, could end this prospect. 

PoliticsHome understands the Government is confident the Bill will pass through Parliament, with the Bill receiving cross party support. One senior Tory MP, who has campaigned on reforming the leasehold sector, hoped the Bill would pass through the Commons easily, despite anticipated backlash from noted anti-leasehold reform MPs on the right of the party such as Geoffrey Clifton-Brown to protest. 

However there are