The government’s Housing Minister, Gavin Barwell MP, has called the current leasehold system a “widespread problem that needs addressing” during a debate in the House of Commons to discuss the Leasehold and Commonhold Reform Act (2002).
Speaking at the end of a wide-ranging debate, during which MPs offered numerous examples of unfair and unjust practices related to the leasehold system, Mr Barwell said: “[The Secretary of State and I] have been looking closely at the issues raised in recent weeks and I can tell the House that we are both absolutely determined to stamp out unfair, unjust and unacceptable abuse of the leasehold system.”
Mr. Barwell highlighted the results of the National Leasehold Survey 2016, which showed that 57% of leaseholders agreed with the statement “I regret purchasing a leasehold property”. The Housing Minister said: “I most certainly do not feel comfortable with that level of concern right across the country... I am very keen to explore how we can promote greater transparency and fairness, and to work with all interested parties to improve leaseholders’ experience of home ownership.”
His call was echoed by Labour’s Ruth Cadbury, who promised that a Labour government would give leaseholders security from rip-off ground rents, end the routine use of leasehold for new housing developments, and cap ground rent charges.
Louie Burns, Managing Director of leasehold enfranchisement specialists, Leasehold Solutions, has been working with the Leasehold Knowledge Partnership to provide vital information to MPs on the All-Party Parliamentary Group (APPG) considering leasehold reform. The investigation by the APPG prompted the debate House of Commons debate on 20 December.
Louie said: “It is fantastic to see that Parliament is waking up to the deplorable scandal of the UK’s feudal system of leasehold. We have been campaigning for years to raise the issue of leasehold on the political agenda and to educate flat owners about their rights.
“I hope that the government will work to bring about timely and meaningful changes to improve the lives of the UK’s 4.1 million leaseholders. Abuse of the leasehold system is a growing problem; 43% of all new properties in 2016 were built as leasehold homes, so without urgent action increasing numbers of flat owners will continue to be exploited for profit by unscrupulous freeholders.”
