Mon, 03 Mar 2025

Mon, 03 Mar 2025 Outright ban on new leasehold flats moves closer

Ministers want to move to a "commonhold" system where flat-owners own a share of their buildings.
A ban on new leasehold flats will be implemented, with a draft bill outlining how existing leaseholds can be converted to commonhold to come later this year. Housing Minister Matthew Pennycook said the current system is "inherently unfair" and that reforms are needed to give leaseholders more control over costs for repairs and maintenance. Many leaseholders have expressed concerns about rising service charges, with some experiencing increases of up to 356% in a few years. Existing leaseholders may not see immediate benefits from the new system, as it is initially aimed at new builds. Freeholder companies say that commonhold would mean residents face greater financial and legal responsibilities for block maintenance and management. Housing Minister Matthew Pennycook has said that existing leaseholders can convert to commonhold under a new system to be outlined later this year, with the goal of making it "very easy" to do so. However, some critics argue that the transition period may still leave many leaseholders facing uncertainty and potential financial burdens. The government's plans have been welcomed by some as a significant step forward in addressing long-standing issues with the leasehold system, but others have expressed concerns about the impact on existing leaseholders and the practicalities of implementing the new system.
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