A complete ban on leasehold properties in England and Wales is unlikely to be implemented before the next General Election, according to Labour Party minister Matthew Pennycook. Though legislation banning leaseholds on new houses was passed in 2024 and a similar ban on new flats is forthcoming, Pennycook warns that the transition must be handled with caution to prevent disruptions in housing availability and avoid complex legal issues.
“It’s highly likely we won’t activate the leasehold ban in this parliamentary term,” Pennycook explained. “The issue is very complex. Our priority is to secure all necessary primary legislation to end leasehold properly. However, switching on the ban requires navigating significant trade-offs, particularly around housing supply.”
The minister further revealed that the government is consulting on the best commencement date to ensure a smooth transition for all stakeholders. “Our goal is to align everyone effectively so that the shift away from leasehold is as seamless as possible,” he said.
READ MORE: State Pensioners Born 1951-1960 Face Increased Risk of HMRC Tax Bills Due to Frozen Allowances
READ MORE: DWP Updates Rules for PIP and DLA: Motability Scheme Changes from July 1
Pennycook also criticized simplistic calls for an immediate overhaul, highlighting the legal and practical challenges of converting millions of leasehold and freehold titles into commonhold overnight. He remarked, “Detractors may cry betrayal and populist parties may make false promises to struggling leaseholders, but we remain committed to the hard work needed to conclude the leasehold system in an orderly manner within this parliament.”
Meanwhile, Harry Scoffin, founder of the campaign group Free Leaseholders, expressed frustration over the delay. He noted that developers are using incentives like free furniture and service charge holidays to attract buyers to new leasehold flats, warning that continued delays will only exacerbate the housing crisis.