In this week's column, Matt Rodda the Labour MP for Reading Central, welcomes upcoming reforms to the 'feudal' leaseholder system. Mr Rodda writes:

In the last few months, a significant number of constituents have been contacting me to raise the difficulties they are experiencing with their leasehold accommodation.  The problems that can arise from this type of property ownership have long been a concern of mine, and I am pleased that the Government has committed to taking steps to bring the feudal leasehold system to an end.

A primary concern is that many leaseholders are locked into expensive agreements and face unjustified administration fees and extortionate service charges.  Variable service charges, by law, must be reasonable. However, many report that they are being asked to pay more for their service and estate charges even though they are not receiving a satisfactory level of service.

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Regrettably, some management companies are failing to deliver on their maintenance and safety obligations.  Managing agents perform an important role in managing and maintaining buildings, so it is crucial that they provide a good service and are accountable to leaseholders. Although many agents perform these duties with a high level of professionalism, this is sadly not always the case, and the Government therefore believes that it is important to protect leaseholders from the actions of rogue operatives. The Government’s planned reforms to empower leaseholders include making it easier for them to take on the management of their buildings themselves so they can directly appoint or replace agents

In some of the recent cases I have been assisting with, social housing tenants have been living in unpleasant and, at times, unsafe conditions whilst they have been trying to get their property manager to resolve outstanding repairs.

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I believe everyone has a right to a decent, safe, secure and affordable home, and that empowerment of tenants should be at the heart of regulation of the social rented sector. I therefore welcome the Government’s commitment to ensuring that the 2.5 million housing association tenants in this country can hold their landlord to account for the homes and the quality of the services they provide. This will be vital in making sure that repairs and complaints are handled more quickly and ensuring that social housing tenants are treated fairly

Many leaseholders have unfortunately also been impacted by the cladding and building safety crisis, and I am in favour of the Government’s plans to review how to better protect leaseholders from costs and to take steps to accelerate the pace of remediation across the country.

More broadly, the Government has committed to ensuring homeowners are provided with greater rights, powers, and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024, which will include measures designed to increase service charge transparency.  It will also enact the remaining Law Commission recommendations relating to enfranchisement and the Right to Manage, tackle unregulated and unaffordable ground rents, reinvigorate commonhold through a comprehensive new legal framework, and ban the sale of new leasehold flats so that commonhold becomes the default tenure.  In addition, the Government has stated its intention to introduce further reforms to the leasehold system over the course of this Parliament and will publish a draft Leasehold and Commonhold Reform Bill in this session. 

The Government is now taking action to implement these reforms at pace and is also introducing further measures to fix the housing market.  These include the ambition to build 1.5 million new homes over the next five years and plans to transform the experience of private renting, as set out in the Renters’ Rights Bill which has its second reading in Parliament this week.

I hope that these reforms will ensure that everyone has access to a safe, secure and affordable home and that residents are treated with the respect they deserve.