A long-anticipated ban on new leasehold properties in England and Wales is unlikely to come into effect until after the next general election, according to Housing Minister Matthew Pennycook. Mr Pennycook defended the government's approach to dismantling the system, stating that a complete end would take years to 'switch on' in order to prevent disruption to housing supply and to navigate potential legal complexities.
The minister's comments come amid ongoing criticism of the government's perceived slow progress in reforming the leasehold system. Many homeowner groups and campaigners have long called for an end to what they describe as an outdated and often unfair tenure, which can see leaseholders face escalating ground rents and service charges, alongside restrictions on their properties.
The government has previously committed to ending the leasehold system for new houses, and has introduced legislation aimed at making it easier and cheaper for leaseholders to extend their leases or buy the freehold. However, the pace of reform has been a point of contention, with some arguing that the current measures do not go far enough or fast enough to address the widespread issues faced by leaseholders.
Mr Pennycook's remarks suggest that a comprehensive ban on new leasehold properties, particularly for flats, will require significant legislative and practical work. This includes careful consideration of how such a change would interact with existing property law and the wider housing market, to ensure a smooth transition and prevent unintended consequences.