The UK government will end the centuries-old leasehold system in England and Wales before this parliament concludes. Housing Minister Matthew Pennycook announced a comprehensive plan to transform property ownership rights affecting 5 million homes, in an exclusive interview with The Guardian.
The government will introduce a commonhold white paper that forms the basis of a draft leasehold reform bill. This legislation will likely ban developers from selling new flats under the current leasehold system.
Pennycook called the reform “incredibly ambitious” and highlighted its historical significance. The existing system, rooted in feudal practices, allows landowners to grant property use rights to others. This approach creates what Pennycook describes as “second-class homeowners.”
The white paper includes critical provisions to improve property ownership:
- Establish strict rules for commonhold building management
- Provide mortgage lenders with clearer maintenance assurances
- Allow property owners to divide buildings into separate sections
- Ensure residents pay only for beneficial amenities
Previous reform attempts by former Housing Secretary Michael Gove faced significant challenges. Pennycook defended the new approach, emphasising careful implementation over rushed legislation. He said the government wants to create lasting benefits for leaseholders.
The proposed changes represent a significant shift in property ownership. They aim to replace the feudal-era system with a more equitable model of joint property management.
Whenever the changes come into practice, Austen Jones Solicitors stands ready to guide clients through these complex legal changes. Our conveyancing team, who have received a number of five-star reviews, offer expert advice to navigate the evolving property landscape.
Contact us to understand how these reforms might affect your property interests.