Government outline plans to ban new leasehold flats

News / Mon 3rd Mar 2025 at 08:24am

MINISTERS have outlined plans to abolish the leasehold system in England and Wales reports the BBC.

Proposals to change the law would ban the sale of new leasehold flats.

Under the leasehold system, third-party landlords known as freeholders own the building and a leaseholder buys the right to occupy a flat within it for a fixed time period.

The government said it wanted to move to a way of building homes that was more in line with the rest of the world, known as commonhold, where homeowners owned a share of and had control over buildings they lived in.

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https://www.bbc.com/news/articles/cvgezyz31jlo

3 Comments for Government outline plans to ban new leasehold flats:

David Forman

2025-03-03 10:42:49

A good initiative by the Labour government. I won't be saying that too often.

Guy Flegman

2025-03-03 12:58:42

While I think leasehold is for fools as you get the worst aspects of renting and ownership, I doubt this will end well as governments make terrible law. For a start, if you go to commonhold, what happens to the current landowners will they be compensated or are they simply removed from the loop. The entire country is built on land ownership and we attract lots of foreign investment on this basis. Just look at central London it’s all privately owned but all the people living there are leaseholders. I really don’t think our government can manage the detail on a change like this. This is no criticism of tories or Labour, but a general critique of government and civil service, as we only seem to get poorly written law..