London leaseholders await reform as government pledges action

Senior Assembly Member Sem Moema has urged government ministers to provide firm dates for leasehold reform, stating that the current uncertainty prevents many London homeowners from planning their lives. Leaseholders in the capital are particularly exposed to the complexities and costs associated with the system.

Leasehold in London: A Significant Issue

In London, 36.1% of housing stock is leasehold, a tenure under which property owners are obligated to pay service charges levied by freeholders. This figure highlights a significantly higher prevalence compared to the national average, with Londoners being more than twice as likely to be leaseholders. A report last year indicated that the median household in the capital was paying £3,912 annually in service charges. City Hall has since initiated an investigation into how these charges impact the broader housing crisis.

Government Pledges and Reform Timeline

Nationally, ministers have committed to abolishing the leasehold system for new developments, though housing minister Matthew Pennycook has cautioned that this transition will not be immediate and could span several years. However, Andy Burnham announced that the Commonhold and Leasehold Reform Bill is scheduled for introduction to Parliament by Christmas, following previous delays. Housing Secretary Angela Rayner has also stated that leaseholders will be protected through the establishment of an independent regulator for managing agents and the capping of administrative fees.

Calls for Faster Implementation

Speaking at a Labour Housing Group fringe event at the Labour Party's annual conference, Sem Moema emphasised the need for accelerated progress and more specific action. She stated that the absence of a clear timetable leaves leaseholders without defined milestones, hindering their ability to plan. Moema argued that after two years of a Labour government, clearer projections for reform implementation, such as specific outcomes within 12 to 18 months, should be achievable. She suggested that incremental changes, like setting dates for ending practices such as 'marriage values' which can increase lease extension costs, are needed in the interim.

Katie Kendrick, founder of the National Leasehold Campaign, also present at the event, described current mechanisms for leaseholders to dispute payments as inadequate. She echoed the call for interim reforms to alleviate the immediate burden on leaseholders, acknowledging that leasehold is unlikely to be abolished overnight but stressing the need for current support.