I am sharing an important update on leasehold reform and the action the Labour Government is taking to deliver on the promises we made to you.
As set out in our manifesto, Labour committed to ending the outdated and unfair leasehold system that has left too many homeowners facing excessive charges, hidden fees and a lack of control over their own homes. We we are now delivering on that commitment.
The Government has published the Draft Commonhold and Leasehold Reform Bill, landmark legislation that begins the process of finally bringing the feudal leasehold system to an end.
For far too long, successive governments failed to tackle the abuses built into the leasehold system. In Manchester Central — where leasehold properties are among the most common in the country — you know first-hand that leasehold has too often meant unfair ground rents, rising service charges and little power to challenge poor management.
This Labour Government is acting where others did not.
The Bill includes:
· A £250 annual cap on ground rents, meaning anyone currently paying more than this will see their costs reduced. After 40 years, ground rents will be replaced entirely by a peppercorn rent.
· An end to leasehold for new flats, fulfilling our manifesto pledge to move to a fairer and more transparent commonhold system.
· The abolition of forfeiture, ending the unjust practice that allows landlords to take back a home over minor debts.
Commonhold will give residents genuine ownership and control. Flat owners will collectively own their building and the land beneath it, choose their own managing agents, and set budgets that reflect residents’ priorities — not the interests of remote freeholders.
These reforms mean:
· No new leasehold flats – commonhold will become the default for apartment ownership.
· Stronger protections for existing leaseholders – including safeguards against unfair fees, excessive service charges and hidden costs.
· A right to move to commonhold – ensuring current leaseholders are not left behind as the system changes.
The Government is now consulting on these reforms, and I strongly encourage leaseholders in Manchester Central to take part and make their voices heard. The consultation can be found here: https://www.gov.uk/government/consultations/moving-to-commonhold-banning-leasehold-for-new-flats.
This Bill shows what it means to have a Labour Government that keeps its promises and takes on vested interests to deliver fairness for homeowners. I will continue to push for strong protections for leaseholders in Manchester Central as the legislation progresses.