Leasehold Ban in England and Wales Delayed Until After Next Election, Minister Confirms
Leasehold ban in England and Wales ‘unlikely before next general election’, minister says
The Guardian
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The housing minister of England and Wales, Matthew Pennycook, stated that a ban on new leasehold properties is unlikely to be implemented before the next general election. Although legislation to end leaseholds on new houses was passed in 2024, the government plans to introduce a similar ban for new flats, emphasizing the need for a gradual transition to avoid legal complications.
- 01A ban on new leasehold properties is unlikely before the next general election.
- 02Legislation to end leaseholds on new houses was passed in 2024.
- 03The government aims to introduce a ban on new leasehold flats soon.
- 04The process requires careful planning to avoid legal issues and housing supply disruptions.
- 05Critics accuse the government of backtracking on its pledge to end leasehold.
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Matthew Pennycook, the housing minister for England and Wales, announced that a ban on new leasehold properties will likely not take effect until after the next general election. Despite the passage of legislation in 2024 to end leaseholds for new houses, the government is still working on a similar ban for new flats. Pennycook emphasized the complexity of the transition, stating that it must be executed carefully to avoid undermining housing supply and encountering legal challenges. He noted that the government is consulting on the best commencement date for this ban to ensure a smooth transition. Critics, including Zack Polanski, the Green party leader, have accused the government of abandoning its commitment to end leasehold, which has faced years of complaints from leaseholders regarding high service charges and deteriorating buildings. Campaigners argue that delays in implementing the ban will exacerbate the ongoing housing crisis, as developers resort to incentives like free furniture and service charge holidays to attract buyers to new leasehold flats.
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The delay in implementing the leasehold ban could worsen the housing crisis, impacting potential homebuyers who face high service charges and limited options.
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