Commonhold and Leasehold Reform

Gideon Amos Excerpts

Tuesday 27th January 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Gideon Amos (Taunton and Wellington) (LD)]

The Liberal Democrats welcome the introduction of a commonhold framework, the abolition of leasehold for newbuild flats, and the end of forfeiture—all these are positive steps in the right direction. Our manifesto has been calling for an end to unfair residential leaseholds since Lloyd George called it “blackmail” in his 1909 People’s Budget. But while I welcome those measures, we should be going much further.

The Housing Secretary this morning called ground rents “money for nothing” and a “scam”, so why should leaseholders continue to pay £250 for nothing? The Government’s proposals need to go further. For freeholders trapped in the fleece-hold of unscrupulous property management companies, the blackmail of the great property rip-off is set to continue. There is nothing that will cap those charges in these proposals. Since residential leaseholds will still be with us for some time, millions of leaseholders need better protection from landlord costs being passed on to them. They need the capping of excessive service charges, like £400 to change a lightbulb and £4,000 to mow the grass. Help is also needed for those trapped in unsafe and defective buildings, hundreds of thousands of which are excluded from the building safety regime.

Will the Minister take forward Liberal Democrat proposals and immediately abolish residential leasehold charges, set ground rents at a peppercorn now, and regulate property and estate-management companies as recommended in the Best report, capping unreasonable service and estate management charges?

[Matthew Pennycook]

I thank the Liberal Democrat spokesman for those questions. He often mentions Lloyd George, and I share his passion for Lloyd George’s radicalism on property law and other measures. I will address the specific points that he raised. During the passage of the Leasehold and Freehold Reform Act 2024, I was clear that my instinctive preference when it comes to ground rents was for a peppercorn cap, fully eliminating ground rents. The changes that we are making ensure that, after 40 years, that change occurs.

Having considered all the analysis and advice available to me as a Minister, including the evidence gathered in response to the previous Administration’s 2023 consultation, I believe that we have set out the right policy. It is clear that an immediate peppercorn cap would carry significant risks, including some that might impact on leaseholders. The Government also recognise that there is a significant difference between regulating the creation of new leases, and intervening to affect existing contracts and investments.

On the functioning of the cap itself, I want to make clear that it is a maximum cash cap. If someone’s lease is below £250 and does not include escalating clauses, their ground rent will not rise to £250. If someone’s ground rent is over £250, at the point that the measures are brought into force they will see an immediate reduction. That will benefit millions of leaseholders across the country. It is a huge cost-of-living intervention, and I hope the House can get behind it as the most just and proportionate way of addressing unregulated and unaffordable ground rent terms.

The hon. Member for Taunton and Wellington (Gideon Amos) will know that we ran a consultation last year on how we can standardise service charges and increase their transparency to ensure that leaseholders can better challenge the reasonableness of service charges at tribunal. However, we do not intend to bring forward a cap, not least because doing so could harm leaseholders, particularly those in enfranchised buildings, who may need to raise sums beyond the cap to carry out essential maintenance works on their buildings.