In a social media post , Mclean stated that the UK Government will restore true home ownership to millions of people. She did not provide further details but posted a link to a piece in the Sunday Times which reports that the UK Government would cap all existing ground rents at a very low rate, known as a "peppercorn" rate, and extend the standard contract lease extension from 90 years to 990 years.
The Department for Levelling Up, Housing and Communities (DLUHC) estimates that there are almost 5 million leasehold homes in England, 70% of which are flats. Almost all flats are sold on a leasehold basis compared to 7% of houses.
Shadow Minister for Levelling Up, Housing, Communities and Local Government, Matthew Pennycook, MP, responded to the announcement by stating that if no further measures will form part of the King’s Speech leaseholders will have been failed, adding that Labour would fundamentally and comprehensively reform the leasehold system.
Many agents and leaseholders will be relieved to hear of plans for new legislation to further reform the leasehold system. Enfranchisement must be made easier, loopholes in redress must be closed, ground rent restrictions must be extended, and the UK Government must ensure any legislation to abolish leasehold improves consumer confidence and is fit for purpose.
A long-term Propertymark campaign
Propertymark has undertaken lobbying and research into the leasehold market since 2017 when problems with new-build leaseholds first hit the headlines.
In 2018 we published a report titled 'Leasehold: A Life Sentence?' Based on the findings of that report, we helped to drive legislative change that has so far culminated in the Leasehold Reform (Ground Rent) Act 2022 and a New Homes Ombudsman via the Building Safety Act 2022. Despite these reforms property agents and consumers still experience difficulties with several areas of leasehold law and we continue to shine a light on ongoing issues affecting the buying and selling of leasehold properties.
Leasehold and Freehold Reform: what has changed?
The Labour Government has committed to driving forward the enforcement of the Leasehold and Freehold Reform Act 2024. Propertymark has campaigned on leasehold reform since 2017, including the lack of a ban on new leaseholds, restrictions on ground rent, and no ground rent cap for existing leaseholders. This research, produced in 2023, highlights the ongoing issues and sentiments of Propertymark Member agents and is still prevalent in our campaign to drive change.
Support for property agents
Visit our Leasehold Campaign page for news, research, training and resources designed to support agents involved in buying, selling or managing leasehold properties.
Leasehold properties
We've been working with the National Leasehold Campaign to raise awareness of the abuse of the leasehold system in newly built homes.
