London Assembly member calls for leasehold reform dates

Ministers must provide definitive dates for leasehold reform to offer certainty to London homeowners, according to Sem Moema, the Labour group’s housing spokesperson at City Hall. Leaseholders are currently unable to plan their futures due to the slow and uncertain progress in implementing new legislation across the country, Moema stated.

Leasehold prevalence in the capital

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Leasehold properties constitute more than a third of London’s housing stock, with 36.1% of homes operating under this system. This means property owners are obligated to pay service charges levied by freeholders. London residents are more than twice as likely as those in the rest of the UK to be leaseholders. A report by a London Assembly housing committee last year revealed that the median household in the capital incurred £3,912 annually in service charges. In response, City Hall has initiated an inquiry into the impact of these charges on the ongoing housing crisis.

Government timelines and proposed changes

Nationally, the government has committed to abolishing the leasehold system for new developments. However, housing minister Matthew Pennycook has cautioned that this transition will not be immediate and could extend over several years. Housing Secretary Angela Rayner announced that the government intends to protect leaseholders by establishing an independent regulator for managing agents and capping administrative fees.

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Moema, speaking to the Local Democracy Reporting Service, emphasised the urgency for faster and more comprehensive action, noting that Londoners are particularly vulnerable to the issues associated with leasehold. She stated that outlining specific timelines is essential to prevent homelessness and financial ruin for leaseholders, as the absence of milestones hinders their ability to plan. Moema suggested that within 12 to 18 months, specific outcomes should be achievable and communicated to leaseholders. She also called for parliamentary time to be allocated for legislation addressing issues like marriage values, which can lead to significant costs for leaseholders seeking to extend their leases.

The reality is that it will be around for a long time, but we need to help leaseholders now.

Katie Kendrick, founder of the National Leasehold Campaign

At a Labour Party conference event, Katie Kendrick, founder of the National Leasehold Campaign, echoed the sentiment, stating that current mechanisms for leaseholders to contest payments are inadequate. She acknowledged that leasehold would persist for an extended period but stressed the immediate need for support for leaseholders.