Campaigners Look to Labour for Leasehold Reform
Campaigners are turning to the Labour party for potential leasehold reform as the party gains momentum towards power. However, concerns linger about whether addressing leasehold issues will be a top priority for the party.
Understanding Leasehold
A leaseholder is a tenant who has paid to reside in a property for a specific period, often including apparent homeowners. Government data indicates that long-term leaseholds typically last between 99-125 years. Once the lease agreement expires, the property reverts to the landlord, who retains ownership of the home and land.
Statistics show that there are nearly five million leasehold properties in England, constituting 20% of the current housing stock.
Labour’s Position and Challenges
Labour currently leads in major opinion polls, with a significant advantage over the Conservative Party. Despite this, if Labour secures power in the next election, it will face challenges such as a sluggish economy and high public sector debt.
Sebastian O’Kelly, CEO at Leasehold Knowledge Partnership, expressed skepticism about leasehold reform being a top priority for a potential Labour government, despite promises made by the opposition.
Labour’s Commitment to Reform
Labour is committed to overhauling the leasehold system, aiming to implement the Law Commission’s recommendations and potentially making commonhold the default tenure for new houses.
While some campaigners were disappointed by Labour’s decision to delay legislation to abolish the leasehold system within the first 100 days of government, senior Labour politicians have since publicly discussed the need for reform.
Future Prospects
With Labour expected to secure a significant victory in the upcoming elections, the responsibility for leasehold reform may fall on Keir Starmer’s party. Despite challenges and delays, campaigners remain hopeful for meaningful change in the leasehold sector.
