Plans to abolish the leasehold system in England and Wales have reportedly been dropped. Housing secretary Michael Gove has previously promised to introduce legislation that would 'fundamentally reform' the leasehold system.
The system is a form of home ownership that provides householders the right to live in a property for a fixed number of years. But there have been mounting concerns about practices in the sector, including over the levying of hefty charges and a lack of transparency in the system.
A report in The Guardian has suggested that the abolishment of the system will no longer form part of a series of reforms which Mr Gove plans to announce in the coming weeks. The paper stated that Downing Street argued there is not enough time before the next general election to carry out the major reforms.
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In light of the report, Labour has accused Mr Gove of losing control. “These reports suggest a department in chaos and a Housing Secretary that has lost control,” Labour’s Lisa Nandy said.
The Wigan MP and shadow housing secretary said: “In the space of a few months, this government has caved into backbenchers on housing targets, locked themselves in internal battles on making the basic improvements for renters and is now rowing back on leasehold commitments.
“Labour is the only party that will deliver much needed reform to give people secure, affordable and decent housing. Where the Tories step back, Labour will step up and implement the Law Commission proposals in full.”
A Department for Levelling Up, Housing and Communities spokesperson said: “We are determined to better protect and empower leaseholders to challenge unreasonable costs. We have already made significant improvements to the market – ending ground rents for most new residential leases, and announcing plans to make it easier and cheaper for leaseholders to extend their lease or buy their freehold."
They added: “In line with our manifesto commitment, we will bring forward further leasehold reforms later in this Parliament.”
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