The Government has published its draft Leasehold and Commonhold Reform Bill, setting out major changes to how leasehold homes and private estates are managed.
For too long, leaseholders and homeowners with unadopted estates have been forced to pay excessive fees for substandard service from unscrupulous managing agents and freeholders. Through my public meeting for leaseholders, ongoing casework and my leasehold survey, I have heard from many residents in Plymouth dealing with serious challenges, from escalating ground rents and questionable administrative charges to new conditions imposed without proper consultation.
Every year, homeowners pay £600 million to freeholders. In 2024 service charges reached an average of £2,300 a year, increasing well above inflation, with service charges in the South West rising by 21.5%.
The Leasehold and Commonhold Reform Bill seeks to address these issues directly and provide meaningful support to leaseholders, as part of wider efforts to ease the cost‑of‑living pressures they face.
Key measures include:
- Capping ground rent at £250 per year, with rent reducing to a peppercorn after 40 years, helping to reduce ongoing costs and prevent sudden and unreasonable increases.
- Establishing commonhold as the default tenure for flats and banning new leasehold flats, ensuring future homeowners have fairer and more transparent ownership structures.
- Creating a clear route for existing leaseholders to transition to commonhold if they wish to do so.
More plans are also in the works to make it easier for leaseholders to enfranchise, and to ensure that managing agents and freeholders are held to account. This will include better regulation and clearer routes for challenging bad practice.
More than 5 million leaseholders, along with future homeowners will benefit from stronger rights, protections, and powers.
Working people in Plymouth and across the country deserve managing agents and freeholders who act in their best interests and this Bill aims to deliver that, with reforms that put homeowners first. Every week, I hear from folks in Plymouth who are being charged excessive fees for the service they receive. The measures set out in this Bill are designed to tackle these problems by lowering costs, increasing transparency, and giving homeowners greater control over their homes.
The Government are consulting on the proposed approach to introducing a ban on the use of leasehold for new flats, so the commonhold model can be the default tenure. The consultation will run until 24th April 2026 and there is more information about this here: Moving to commonhold: banning leasehold for new flats – GOV.UK
I know that there is more to do, and many people in Plymouth are still living with the uncertainty that comes with too many leasehold properties. If you live in my patch and you are having issues with leasehold management agencies, please get in touch with me by email: [email protected]