Anger is growing over the government’s failure to introduce the delayed Commonhold and Leasehold Reform Bill.

Ministers had guaranteed to publish draft legislation by the end of the year but said last week that this would not happen due to ‘unforeseen delays’. Letting agents, the Mayor of London and MPs have now all waded in to criticise the move.

Florence Eshalomi MP, chair of the HCLG committee, says the failure to publish before year-end is “deeply disappointing”, warning that the hold-up “will cause further uncertainty for long-suffering leaseholders” and could make meaningful reform during this Parliament a real challenge.

Words

Her Labour colleague Barry Gardiner MP had even harsher words for the minister. “The manifesto committed to ending the feudal leasehold system for good,” says Gardiner. “Why is my government, the party of labour, struggling to take on the parasitical rent-seekers who demand ground rent for no service?”

Mayor of London Sadiq Khan is also concerned and, at a recent London Assembly meeting, said he would commit to ensuring the Affordable Housing Programme only supported commonhold schemes but that the current deal with MHCLG didn’t allow this. Khan added that the ministerial delay in leasehold legislation was a concern for City Hall.

Setback

Propertymark has labelled it a “major setback for long-awaited housing reform”. The letting agent body adds: “Despite current delays, the draft legislation is expected to set out a clear path toward abolishing much of the leasehold system and replacing it with a strengthened commonhold regime - a transition Propertymark and other campaigners insist must be delivered with clarity, fairness and urgency to protect millions of homeowners.”

A Commonhold White Paper proposed making commonhold the default tenure and outlined how the legal framework might work, including the conversion of existing leaseholds and the banning of new leasehold flats. The delayed Bill is expected to build on these proposals and bring in measures to regulate ground rents, abolish the disproportionate threat of forfeiture and strengthen enfranchisement and management rights.

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