Leasehold Reform

Lord Kennedy of Southwark Excerpts

Thursday 11th January 2024 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government why they did not proceed with the planned abolition of leasehold for flats in the Leasehold and Freehold Reform Bill.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I refer the House to my relevant interests, as set out in the register, and the fact that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the Leasehold and Freehold Reform Bill contains a substantial package of measures to increase leaseholders’ rights as consumers and home owners. We have prioritised the most significant measures that will help existing leaseholders now. We remain committed to continuing our leasehold and commonhold reforms, and the Bill is a major step forward. The best way to help leaseholders now is to make the existing leases fairer and more affordable. Our focus is on legislating where we can in order to make genuine improvements to leaseholders’ daily lives straightaway.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, although many of the measures in the Bill are very welcome, we have been told for years that the Government would abolish, as they put it, this “feudal” leasehold housing tenure. The Bill had been promised in the third Session of this Parliament. Here we are in the last Session of the Parliament, and the abolition of leasehold is completely left out of the Bill. It was then confirmed that the Government would introduce amendments later on, but only to abolish leasehold houses, with leasehold flats, which comprise 75% of leasehold, here to stay. That is not good enough. Will the Minister take the opportunity to apologise, given the Government’s pledge to abolish the feudal leasehold housing tenure?

[Baroness Scott of Bybrook (Con)]

My Lords, I will not apologise; the measures in the Bill will benefit owners of flats and houses alike. The majority of houses have always been provided as freehold, and there are few justifications for building new leasehold houses, so the Government will ban them, other than in exceptional circumstances. However, flats have shared fabric and infrastructure and therefore require some form of arrangement to facilitate management. This has been facilitated by a lease. None the less, the Government recognise the issues in the leasehold system and remain committed to reinvigorating the commonhold system so that developers and home owners have an alternative to leasehold ownership.