REDDITCH MP Rachel Maclean, in her role as Minister of State (Housing and Planning) has confirmed that plans to phase out leasehold will form part of the King’s Speech on November 7, 2023.
The Bill is expected to ban leaseholds for houses, but not new flats.
Mrs Mclean recently stated that the UK Government will restore true home ownership to millions of people.
However she did not provide further details, but posted a link to an article in the Sunday Times which reports that the UK Government would cap all existing ground rents at a very low rate and extend the standard contract lease extension from 90 years to 990 years.
The Department for Levelling Up, Housing and Communities (DLUHC) estimates that there are almost five million leasehold homes in England, 70 per cent of which are flats.
Almost all flats are sold on a leasehold basis compared to seven per cent of houses.
Shadow Minister for Levelling Up, Housing, Communities and Local Government, Matthew Pennycook MP, responded to the announcement by stating that if no further measures will form part of the King’s Speech leaseholders will have been failed, adding that Labour would fundamentally and comprehensively reform the leasehold system.
