Kings Speech to draw upon the leasehold law, housing minister says

Rachel MacLean has confirmed a bill to phase out some leaseholds in England and Wales will be included in the Kings Speech next week.

On 7^th November King Charles is set to deliver a speech that sets out government plans for the country within the next year. Part of this will see the King impose a long-promised change to the leasehold system, which has seen expensive fees forced on homeowners.

Currently, anyone who owns a lease has the right to use the property, but they still have to get their landlords permission for any work or changes to their home.

When a leasehold property is sold, a lease is granted for a fixed period of time typically between 99 and 125 years – but sometimes up to 999 years. However, leasehold homeowners are often charged expensive ground rents as well as fees if they want to make changes.

Against this backdrop, the housing department estimates that there are almost five million leasehold homes in England, of which 70% are flats. The number of new-build houses sold as leaseholds has dropped from 15% in 2016 to 1% in December 2022.

Although Ms MacLean has not provided many details of the new bill to phase out leaseholds, she has posted a link to an article from the Sunday Times, which said that following a consultation the government would cap all existing ground rents.

The piece also said the government would switch up the standard contract lease extension from 90 years to 990 years.

This new bill, which is expected to be introduced to Parliament before Christmas, will reportedly not impact flats, just houses.

Image: Mark Stuckey

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