Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Government Urged to Deliver Leasehold Reform Bill by Autumn After Missed Deadline
The government has been asked to commit to publishing the final Commonhold and Leasehold Reform Bill by autumn after failing to respond to a report on the draft bill. The delay comes after Keir Starmer’s resignation as Prime Minister, which has impacted the government’s ability to meet its response deadline.
Housing Secretary Matthew Pennycook informed the Housing, Communities and Local Government (HCLG) Committee that the government would not be able to respond to its report by the 27 July deadline. Pennycook cited the change in government leadership as the reason for the delay and stated that the department would “regrettably” fail to respond before the summer recess, which runs from 17 July to 31 August.
The HCLG Committee’s report, published in May, stated that the government’s proposed legislation would give leaseholders more control over their homes, but called for faster and more comprehensive reforms. Pennycook said the government remained “acutely aware of the need to act urgently to provide relief to leaseholders and homeowners on freehold estates currently suffering as a result of unfair and unreasonable practices.” He also confirmed the government’s commitment to honouring its manifesto commitments in full.
Pennycook indicated that the new administration would decide on a date for the government’s response, and he hoped this would be provided soon after the summer recess, with a substantive bill introduced to Parliament soon after.
Florence Eshalomi MP, chair of the HCLG Committee, expressed disappointment at the delay and urged the incoming Prime Minister to prioritise the revised legislation after the summer recess. She highlighted that three successive governments have secured electoral mandates to address ground rents in existing leases and that MPs from all sides have stressed the importance of urgent action on leasehold reform. Eshalomi called for the final bill to be introduced in autumn 2026.
This ongoing delay and the call for urgent reform are particularly relevant for UK letting agents and inventory clerks, as changes to leasehold law could impact property management, ground rents, and the rights of leaseholders.
Source: Mortgage Solutions