Leasehold system will not be abolished this year

The leasehold strategy volition not beryllium abolished successful England and Wales this year, contempt Housing Secretary Michael Gove antecedently promising to scrap it.

Mr Gove has described the strategy - wherever the proprietor of a spot pays attraction charges and often crushed rent - arsenic unfair and outdated.

The authorities said it would bring guardant leasehold reforms aboriginal this year.

But this volition not see a timeframe for abolishing the system.

Mr Gove's long-held ambition is to scrap the strategy wholly and helium has expressed this presumption repeatedly successful media interviews and successful the House of Commons.

In January, helium told MPs the authorities would "absolutely" support a committedness to abolish the leasehold strategy and would "bring guardant authorities shortly".

Instead, the projected caller instrumentality is expected to absorption connected further protections for tenants from crushed rents and ineligible fees, and strengthening the powers they person successful dealings with freeholders.

Karolina Zoltaniecka, co-founder of the Commonhold Now run group, said the quality was "a betrayal".

She said "more sticking plaster reforms" would "do thing to manus power to the paying leaseholders".

Last year, the authorities abolished crushed rents for astir caller residential leasehold properties successful England and Wales, but lone for caller leases granted aft June 2022.

A crushed rent is often paid by owners of leasehold properties connected apical of their mortgage, with immoderate facing precocious charges and unexpected increases.

This is due to the fact that they lone ain the lease, which gives them the close to usage the property, but not the onshore it is built on.

When a leasehold level oregon location is archetypal sold, a lease is granted for a fixed play of time. People whitethorn widen their lease oregon bargain the freehold, but this tin beryllium analyzable and costly and impact ineligible fees.

Only a fistful of countries inactive person leasehold systems but astir 20% of homes successful England are leasehold properties, galore of them flats successful cities.

Mr Gove's pledge to abolish leaseholds was viewed with immoderate scepticism, adjacent astatine the time, not slightest due to the fact that an alternate strategy has not been afloat established.

A measure including further leasehold reforms is expected successful the King's Speech, which sets retired the authorities the authorities intends to prosecute successful the adjacent parliamentary session.

The scope of the measure has not yet been agreed, but it is expected to bring guardant reforms that volition marque the leasehold strategy little attractive, and laic the groundwork for a viable commonhold system.

A commonhold strategy would mean occupants jointly ain and instrumentality work for their buildings without an expiring lease.

Mr Gove's ambition to determination distant from leasehold to commonhold is unchanged, but the existing strategy volition not beryllium abolished overnight, which volition disappoint campaigners.

Conservative MPs Sir Peter Bottomley and Bob Blackman are among those who privation the leasehold strategy to beryllium scrapped.

On Twitter, Mr Bottomley said the "much-needed reform" had been "delayed for acold excessively long".

Labour has pledged to extremity the merchantability of caller backstage leasehold houses and present a strategy to regenerate backstage leasehold flats with commonhold.

The party's shadiness lodging caput Lisa Nandy, said: "In the abstraction of a fewer months, this authorities has caved into backbenchers connected lodging targets, locked themselves successful interior battles connected making the basal improvements for renters and is present rowing backmost connected leasehold commitments.

"Labour is the lone enactment that volition present overmuch needed betterment to springiness radical secure, affordable and decent housing."

The authorities is besides facing challenges implicit different aspects of lodging policy.

In December, Mr Gove agreed to h2o down lodging targets for section councils, successful effect to a rebellion from Conservative MPs.

But different Tories judge this was a mistake and that failing to physique capable homes could harm the party's prospects, peculiarly with younger voters.

Meanwhile, long-promised authorities to betterment the rental marketplace has been delayed for "procedural" reasons, prompting disapproval from campaigners and demands from Labour not to h2o down promised protections for tenants.

A Department for Levelling Up Housing and Communities spokesperson said: "We are determined to amended support and empower leaseholders to situation unreasonable costs.

"We person already made important improvements to the marketplace - ending crushed rents for astir caller residential leases, and announcing plans to marque it easier and cheaper for leaseholders to widen their lease oregon bargain their freehold.

"In enactment with our manifesto commitment, we volition bring guardant further leasehold reforms aboriginal successful this Parliament."