The government has announced it will not be abolishing leaseholds during this parliament despite promises from Housing Secretary Michael Gove to do precisely that early this year.
In January, Michael Gove said he did not think leasehold property is fair in any way. “It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it,” he said. Mr Gove then promised to abolish leaseholds as part of radical reforms set out in the Conservative Party’s manifesto before the last election.
While other previously announced reforms are expected to go ahead, the abolition of leasehold will not be one of them. According to government sources, the prime minister does not believe there is time before next year’s general election to push through such a major reform to the property system.
One reform still expected to go ahead is a new law relating to lease extensions, as you can read about in our article What leasehold reforms are on the government’s agenda?
There is little detail about other potential reforms other than a statement from the Department for Levelling Up, Housing and Communities, saying: “In line with our manifesto commitment, we will bring forward further leasehold reforms later in this parliament.”
We will update you with further information about these reforms as and when more information is available.
If you have any queries in relation to residential property, please contact Daniel Broughton at [email protected].