Commonhold and Leasehold Reform

Catherine McKinnell Excerpts

Tuesday 27th January 2026 Commons Chamber

[Matthew Pennycook]

The House can, of course, help us to speed up the progress of the Bill; 2028 is only a rough estimate based on the time it will take for the Bill, once it has passed its draft phase and scrutiny from the Select Committee, to be introduced in its final form and to get through both Houses. We will then also have to switch on the necessary secondary legislation. Up until that point, people will continue to pay their existing ground rents, but, as I say, the cap will apply once we bring those measures into force. For lots and lots of leaseholders around the country—I am sure the hon. Gentleman has many in his constituency—who are paying onerous, high ground rent terms way above £250, that will be an immediate financial relief that will be hugely beneficial to them.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Since I was first elected in 2010, I have seen the misery caused for constituents in Great Park, Moorfields and Grove Park, who suffer high ground rents, hikes in service charges, threats of forfeiture and a total lack of accountability of the maintenance companies. I therefore strongly welcome today’s announcements and truly thank the Minister for listening to calls for change. However, many will still find themselves living in existing leasehold houses and will remain trapped in this old, unfair and very frustrating system. They are asking me what the Government will do next to support them. Could the Minister explain that?

[Matthew Pennycook]

I am more than happy to have a separate conversation with my hon. Friend about the specific conditions pertaining to leasehold houses. She will know, of course, that the Leasehold Reform (Ground Rent) Act 2022 made a number of changes in that area. In general, we want to arrive at a situation, once our reform agenda is enacted, where existing leaseholders can choose to remain in leasehold ownership but can take advantage of the new rights and protections made available to them, including a cheaper and easier enfranchisement process if they want to extend their lease or buy their freehold, or convert to commonhold. That is why it is so important that the Bill contains an easier mechanism to convert to commonhold, which, as I said in the statement, we are clear is not only an alternative to leasehold ownership but a radical improvement on it.