Hopes Rise For Spring Reform Of “Feudal” Leasehold System, But Legal Concerns Remain

Parliamentarians and campaigners are hopeful the Leasehold and Freehold Reform Bill, which seeks to tackle “inequality” in the housing market, could be put into law early next year, after it faced little opposition in the House of Commons.

However, concerns have been raised over the rushed nature of the legislation, and the fact it could generate significant legal challenges and calls for compensation.

The Bill, which had its Second Reading on 11th December, received almost unanimous support across the House on the case for reform. One MP after another – from all sides of the political divide – spoke about the caseload of work they received from constituents concerning leasehold and “fleecehold” (private estates hit with excessive charges from property management companies).

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. 

Many critics have claimed leasehold is “feudal” and exploitative, and requires Government legislation to overhaul the system.

Reforms to leasehold have long been promised by prime ministers including Margaret Thatcher, John Major, Tony Blair, Theresa May and Boris Johnson but successive Governments have failed to deliver on their promises to alter the system.

Only a handful of Lords, including Conservative peer Lord Moylan, are sympathetic towards the current system. One peer, who is relatively supportive