Yvonne Fovargue MP: A real lack of ambition in leasehold bill

​This Bill is the second part of a legislative package to reform leasehold law.

It follows the Leasehold Reform (Ground Rent) Act 2022, which put an end to ground rents for most new residential leasehold properties in England and Wales.

The Government’s aim is to make it cheaper and easier for more leaseholders to extend their lease, buy their freehold and take over management of their building.

I welcome and support most measures in the Bill, including changes to the calculation of premium payable for lease extensions or collectively buying the freehold, the end of marriage value, the introduction of 990-year extensions, ground rent reforms and freehold estate regulation.

But I remain concerned that this legislation has been scaled-back. We must ensure that this is not a missed opportunity. The Bill’s stated aim is to ban leasehold. But, as it stands, the Bill will not do this.

Ministers have promised amendments as the Bill progresses. But I am dismayed that the Government did not include a clause to ban leasehold to begin with.

Vast swathes of amendments further down the line are, in my view, not an effective way to legislate.

I also share concerns that the proposed ban on new leasehold houses will not extend to flats.

For most freehold homeowners, ownership means security and control, yet for far too many leaseholders, the reality of home ownership falls woefully short of the dream they were promised.

Too many leaseholders face constant struggles with punitive and ever rising ground rents – rent for a home that they own – in exchange for which the freeholder needs to do nothing at all.

Leaseholders are locked into expensive agreements and face unjustified administration fees and extortionate charges. Conditions are imposed with little or no consultation. For leaseholders also affected by the building safety crisis, the situation is even worse.

I support making commonhold the default tenure for all new properties as part of wider proposals to reform the leasehold system, enacting the Law Commission’s recommendations on enfranchisement, commonhold and right to manage in full.

In my view, the existing system should be completely overhauled so that existing leaseholders can collectively purchase more easily and move to commonhold if they wish.

While I regret the Bill’s lack of ambition, I support its principle and the intent of its provisions.

The Bill passed and will now proceed to Committee Stage for further scrutiny. Labour will support efforts to strengthen this legislation as it progresses.

May I take this opportunity to wish all readers of the Wigan Observer a very happy New Year, and to pledge that I will continue to do all I can to stand up for you in Parliament.