UK Leasehold Reform Delayed: Ban Unlikely Pre-Election

Housing minister Matthew Pennycook said the ban on new leasehold properties in England and Wales will not be switched on this parliament. Although primary legislation to stop new leasehold houses passed in 2024 and a measure for new flats is pending, he described the rollout as “highly complex” and warned that an immediate ban could jeopardise housing supply. He added government must first have all necessary primary legislation and determine a smooth commencement date through consultation.

The GuardianBirmingham Mail

Leasehold lets developers retain land while selling the building, obliging owners to pay ground rent and service charges. Persistent complaints have driven the Labour administration since 2024 to propose reforms: capping ground rents, encouraging conversion of leaseholds to commonhold ownership, and expanding shared-ownership schemes. The ban on new leasehold houses took effect in 2024; a comparable ban on new flats is slated for legislation.

Birmingham Mail

Matthew Pennycook leads the reform. Harry Scoffin, founder of Free Leaseholders, says developers are using incentives such as free furniture and two-year service-charge holidays to attract buyers, and that government delay worsens the housing crisis. Green Party leader Zack Polanski accuses Labour of reneging on its pre-election pledge to end leasehold sales.

The Guardian

Proponents argue ending leasehold sales would lower costs for homeowners and simplify title records. Officials warn a rapid transition could disrupt mortgage market, overload land registry with millions of title conversions, and potentially reduce housing supply if developers face constraints.

The Guardian

The minister questioned the legality and practicality of converting leasehold and freehold titles to commonhold “overnight,” and no set commencement date has been announced. This leaves leaseholders and developers uncertain about timeline and details.

Birmingham Mail

• “I think it’s highly likely that we don’t switch on the ban in this parliament,” — Matthew Pennycook, Housing Minister

The Guardian

• “What we’re trying to get through this consultation is: what’s the commencement date where we’ve got everyone lined up in a way that the transition is going to be really smooth? That’s our objective.” — Matthew Pennycook, Housing Minister

The Guardian

• “Those advocating for such an approach cannot answer how it would be lawful, how the impact on the mortgage market would be managed, how it would even be feasible for the land registry to delete millions of leasehold and freehold titles and replace them with commonhold ones overnight,” — Matthew Pennycook, Housing Minister

The Guardian

• “With developers resorting to free furniture and two-year service charge holidays to lure people into buying their new leasehold flats, foot-dragging is only going to worsen the housing crisis.” — Harry Scoffin, Founder, Free Leaseholders

The Guardian

The government will keep consulting on start date and plans to activate the ban after election.

The Guardian