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Leasehold system will be abolished before the next general election.
Leasehold system will be abolished before the next general election
According to a new plan released by the UK government last week, a comprehensive reform of the centuries-old leasehold system will take place. In England and Wales, the sale of new leasehold properties will be banned. This means that commonhold will become the default form of property ownership, giving homeowners greater control over their properties.
Under the current system, third-party landlords can own the leasehold rights to a building, allowing them to make decisions on behalf of homeowners. For years, leaseholders have complained about high costs and poor building quality, while homeowners have long been burdened by what they describe as “unfair and unreasonable costs.”
In the leasehold system, homeowners have the right to use the property, but ownership of the land or building belongs to a freeholder. This means homeowners must pay ground rent and service fees throughout the lease term, which typically lasts 99, 125, 250, or even 999 years.
Leasehold ownership is commonly found in flats or apartment-style properties. However, this system has several issues, such as high service fees, non-transparent fee structures, and the risk of property devaluation as the lease term shortens.
As promised in the Labour Party’s election manifesto, efforts are underway to abolish the leasehold system and grant homeowners greater control over their properties. Under the proposed reforms, homeowners will no longer need to pay additional charges like ground rent.
A government white paper states that a new legal framework will be introduced to enhance the commonhold system, also known as freehold tenure. Commonhold is a form of property ownership where homeowners have full ownership of their individual units while jointly owning and managing shared areas with other unit owners. This model is widely adopted in many countries worldwide and is considered a more modern and suitable alternative.
Additionally, the government will introduce a series of measures to provide better protection for leaseholders, including:
- Extending lease terms: The standard lease extension period will increase from 90 years to 990 years, and the requirement to have lived in the property for two years before applying for an extension will be removed.
- Management rights reform: A new “management rights” measure will allow more mixed-use building owners to take control from their freeholders.
Housing Minister Matthew Pennycook stated: “By taking decisive action to improve and restore the commonhold system and making it the default tenure, we will ensure that homeowners, rather than third-party landlords, own the buildings they live in and have a greater say in how their homes are managed and how they pay their bills.”
The British Property Federation has expressed support for these changes. Its policy director, Ian Fletcher, noted that maintaining and managing large mixed-use buildings is complex, and owners must be trained before the new system takes effect. He also called for a clear transition process from leasehold to commonhold, including assessing homeowners’ willingness to manage buildings themselves and weighing the pros and cons of the changes.
The Department for Housing, Communities, and Local Government announced that a draft Leasehold and Commonhold Reform Bill will be published later this year, detailing how the reformed commonhold system will operate.
This legislation will apply to England and Wales, affecting approximately 5 million leasehold properties.
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After a 4.6% price increase, the London Underground has become the world’s most expensive public transportation.
Despite UK rail services experiencing record-low punctuality, the government has proceeded with its decision to increase train and Tube fares. As of March 2, regulated rail fares in England and Wales have risen by 4.6%. This includes most season tickets for commuters, off-peak return fares for long-distance routes, and travelcards for major urban areas.
At the same time, London Underground fares have also increased by 4.6%, making it the “world’s most expensive public transport system.” The daily fare cap for Zone 1 has risen from £8.50 to £8.90, while the cap for Zones 1-3 has increased to £10.50.
A study by The Telegraph comparing fares across the world’s top ten metro systems found that, despite different fare structures, London now ranks as the most expensive based on single journey fares.
While Berlin’s city center single fare is slightly higher at £3.14, London’s daily fare cap of £16.30 (Zones 1-6) surpasses Berlin’s equivalent cap of £10.17. Fares in Paris and Washington, D.C. are also significantly lower, starting at £1.65 and £1.78 respectively. Meanwhile, London’s standard single fare of £2.40 is three times higher than Seoul (77p) and Tokyo (95p), and double that of Madrid (£1.24).
A spokesperson for Transport for London (TfL) explained: “In many other international cities, a significant portion of metro operating costs is covered by government subsidies or dedicated taxes. In many European and North American cities, subsidies and tax revenues account for 40% to 60% of their income. Without these subsidies, fares in those cities might be comparable to—or even higher than—TfL fares.”
“We remain committed to keeping fares as low as possible while ensuring public transport remains safe, reliable, and convenient. Additionally, bus and tram fares across the UK will be frozen for another year, until March 2026,” the spokesperson added.
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UK government planning 6 billion pounds in welfare savings.
According to ITV News, UK Chancellor Rachel Reeves is planning to cut over £6 billion in welfare spending as part of efforts to balance the country’s finances.
Reeves is set to deliver the Spring Budget on March 26, but since the last budget in October, the economic outlook has remained challenging. With slowing economic growth and concerns over potential US tariff hikes, she must find additional funds to meet Labour’s strict fiscal rules.
Last week, Reeves stated that after 14 years of Conservative leadership, the welfare budget had become “out of control,” forcing her to choose between tax increases and a return to austerity measures.
According to ITV, the Treasury is considering raising the eligibility threshold for Personal Independence Payment (PIP)—a disability benefit—and freezing these payments until 2026 to prevent them from rising with inflation, potentially saving billions.
The Office for Budget Responsibility (OBR) predicts that by 2029/30, the cost of disability and out-of-work benefits will reach £100 billion per year. To achieve Reeves’ goal of balancing day-to-day spending with tax revenues, welfare cuts may result in higher National Insurance contributions for workers and reduced benefits for those deemed unable to work.
The Resolution Foundation, a think tank focused on low-income households, suggests that the government’s welfare cuts will target disability and health-related benefits rather than tightening eligibility criteria.
At the same time, the government has hinted at strengthening employment support for sick and disabled individuals, aiming to help them return to work rather than relying on state benefits.
