You are here:
  1. Home
  2. News
  3. Stories
  4. Labour report sets out plans to end leasehold ownership

Labour report sets out plans to end leasehold ownership

10 July 2019

The proposals

The Labour Party has published its plans to end leasehold ownership of houses and flats in a report titled ‘A new deal for leaseholders’.

The report sets out wide-ranging proposals, which aim to give new rights to leaseholders.

The proposals have been sent out for consultation for views from leaseholders and others on next steps.

The next Labour government proposes to:

  • end the sale of new private leasehold houses with direct effect and the sale of private leasehold flats by the end of our first term in government
  • end ground rents for new leasehold homes, and cap ground rents for existing leaseholders at 0.1% of the property value, up to a maximum of £250 a year
  • set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1% of the property value
  • crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies
  • give residents greater powers over the management of their homes, with new rights for flat owners to form residents’ associations and by simplifying the right to manage

It is hoped these changes will up-end the current rules disadvantaging leaseholders.

Our view

We are supportive of the call to end the sale of new private leasehold houses and ground rents for new leasehold homes.

We also support:

  • the publishing of a reference list of reasonable charges
  • requiring transparency on service charges
  • giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies, as has already been proposed by government

We are pleased to see that leasehold reform has proven to be a cross-party issue.

Other proposals set out by Labour include:

  • a promise to revitalise commonhold
  • renewed calls for a full public inquiry into mis-selling in the leasehold market

Labour’s shadow housing secretary, John Healey MP said: “This consultation document sets out the next Labour government’s ambition to end the broken leasehold model for good”.

Download the full report (PDF 329 KB)

Next steps

The consultation closes on 30 September.

To respond to the consultation, send your views to leaseholdconsultation@labour.org.uk.

If you would like your comments to be taken into consideration in our response, contact our property team by 12 August.

Recommended

Professional Development Centre logo
Stamp duty land tax on commercial property transactions

On Monday 9 September 12:30 join us as we discuss recent and current SDLT issues affecting commercial property transactions

Stamp duty land tax on commercial property transactions > More