Ruth welcomes new leasehold reforms

 Ruth Cadbury MP has welcomed the news that the Government will introduce further reforms to protect ‘leaseholders’ (those who own a flat on a long lease). The new reforms introduced by the Government will cap the ‘ground rent’ that leaseholders can be charged at £250 a year. Previously rising levels of ground rent had made it difficult for leaseholders to sell.

Additional reforms also mean that ground rent will ultimately be reduced to a ‘peppercorn’ or zero rate after 40 years, while abolishing ‘forfeiture’ where leaseholders can lose their home and the equity built up in it. The bill will also ban the sale of new freehold flats and houses, while making it easier for flat owners to move to a commonhold system of ownership- as used in many other European countries, and like the Scottish system.

These changes are part of the Leasehold Reform Bill which will now begin to go through Parliament.

Speaking in full about this announcement Ruth said,

‘‘On behalf of the many leaseholders who have been contacting me in the ten years I have been an MP, I am delighted that the Government have listened and acted. 

I have been part of a cross-party group of MPs, working with Leaseholders from across the country who have stood up against the powerful vested interests who opposed fixing leasehold. Leasehold is a feudal and antique form of ownership which is unique to England and it has caused so many problems for people who own flats in Hounslow Isleworth and Brentford.

Some leaseholders are unable to sell their flats due to complicating with their lease, while others have seen their service charge double or triple over recent years. The failure to fix leasehold is making the cost-of-living crisis worse and is leaving too many trapped when they cannot sell their property.

Leaseholders locally will know that I have been campaigning for a number of years to highlight these issues, and I recently raised the need to act directly with the Prime Minister at PMQs.

I will continue to work to campaign to stand up for leaseholders locally and to ensure the Government carries through the much-needed reforms.’’