Leasehold Reform

Noah Law Excerpts

Tuesday 3rd June 2025 Westminster Hall

[Alex Norris]

I commend my hon. Friend for his work there; it will be of great succour to a number of his constituents. However, he is right, because this is a confluence a failure to build enough houses and a system that has been left to govern itself and act in the ways that my hon. Friend the Member for Brentford and Isleworth set out, leaving people with no choice but to enter into arrangements that lead to them having to live with these long-term consequences. That is why we must build more houses and address those behaviours.

[Noah Law (St Austell and Newquay) (Lab)]

Does the Minister agree that part of ensuring that we can take more control and offer more choice to residents is allowing residents to take greater control for themselves and, in the process, ensure better value for the services that they need on their estates?

[Alex Norris]

I absolutely agree, and I will turn to that in a second.

We will also be consulting on the valuation rates used to calculate the cost of enfranchisement premiums, and would welcome hon. and right hon. Members’ views on that. However, there are some deficiencies in the Act that need to be rectified in primary legislation, so we do need to legislate. That gives us the opportunity to bring forward, in line with what hon. Members have said, a new era of commonhold being the default tenure for new flats.

That is why we committed in the King’s Speech to a leasehold and commonhold reform Bill. It is part of our commitment to bring the feudal leasehold system to an end. We have committed to publishing draft legislation on this in the second half of the year. It will make commonhold the default, and it began with the publication of the White Paper in March. Alongside that, in response to the question from my hon. Friend the Member for Brentford and Isleworth about the 5 million leaseholders, we want to make the conversion process easier. Once commonhold comes back into public prominence as a model, I think it will be more popular, but we want it to be easier as well.

We want to reform the existing system by legislating to tackle unregulated and unaffordable ground rents, as was mentioned, to remove the disproportionate and draconian threat of forfeiture, to act to protect leasehold from poor service from managing agents, as many have said, and to enact the remaining Law Commission recommendations on enfranchisement and the right to manage. We will address private estate management in that.