Landlords ‘looting' millions of leaseholders under Labour
A series of reforms aimed at boosting leaseholder powers have been unveiled by the Government, but critics argue they will fail to deliver change.
Under new rules, leaseholders will be able to more easily challenge extortionate service charges, which they are required to pay to cover the upkeep of shared areas in their building.
The new proposals – labelled 'performative nonsense' by campaigners – come after Labour previously rowed back on a commitment to abolish leasehold within 100 days of taking power.
Housing minister, Matthew Pennycook, said the party still plans to bring the 'feudal system' to an end, but a timeline on the pledge has not been made clear.
The smaller reforms have been proposed in a new consultation unveiled by Angela Rayner's Ministry of Housing, Communities and Local Government.
It says leaseholders will receive a standardised service charge documentation each year which will spell out clear and detailed information about how their rates are calculated and spent.
This is hoped to 'make it easier for them to challenge unreasonable bills, and potentially save money where expenses are unjustified'.
Further reforms are aimed at stopping leaseholders who have successfully challenged their bill from having to automatically pay for landlords' litigation costs.
Property managers will also be forced to qualify as professional practitioners for the first time.
Mr Pennycook said: 'This bold package of reforms will arm leaseholders with greater rights and protections, and empower them to challenge poor practice and unreasonable charges and fees.'
But Harry Scoffin, of the campaign group Free Leaseholders, said the proposals do not go far enough and leaseholders will continue to be 'looted' by landlords.
He said: 'There is this endless number of consultations. The Government is investing all of this energy on tweaking the current system, rather than abolishing leasehold. We will continue to be looted.
'It's a real worry. Leaseholders are exhausted, and do not want to spend years of their life becoming serial litigators challenging their landlords, which is what would happen here.
'The Government says the reforms will strengthen the arm of leaseholders, but this won't work. These tribunals aren't friendly and leaseholders are sometimes up against KCs, literally the creme de la creme lawyers in the land.'
Posting on X, Jay Silva wrote: 'More dithering. Why do we need more consultations? How many more of them do successive governments want?'
Another user labelled the proposals 'performative nonsense'. They said: 'You said you would abolish leasehold and have not. This is more stalling.'
Last October, Mr Pennycook warned that leasehold reform could take as long as five years, describing it as a 'whole of Parliament commitment'.
In its manifesto, Labour said it would 'ban new leasehold flats and ensure commonhold is the default tenure'. The party went on to reiterate this promise in the King's Speech, also promising to regulate ground rents and to 'act quickly' to implement its reforms.
In May 2023, Lisa Nandy, the former shadow housing secretary, said a future Labour government would bring forward legislation to abolish leasehold within 100 days. But in April, the party quietly dropped this pledge.
The Leaseholders Charity said the Government's latest proposals – which are out for consultation until the end of September – were announced 'with as much enthusiasm as a visit to the dentist'.
There are 4.8 million leasehold properties in England, equivalent to a fifth of the country's housing stock. In 2023-24, leaseholders paid an average annual service charge of £1,720, but some costs spiralled to five figures.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
14 minutes ago
- The Guardian
The Guardian view on Macron's state visit: a renewed entente cordiale is good for France, Britain and Europe
In the years after the Brexit referendum, the deterioration of Anglo-French relations became one measure of the sorry disconnect between a radicalised, reckless Conservative party and any sane notion of the national interest. In 2021, a bellicose Boris Johnson sent Royal Navy frigates to patrol off the coast of Jersey in response to a dispute with Paris over fishing rights. The following year, notoriously, Liz Truss declined to say whether she considered the French president, Emmanuel Macron, to be a friend or foe to Britain. For five years, no Franco-British bilateral summits took place at all. That, thankfully, was then. France and Britain are close neighbours, nuclear powers and members of the United Nations security council. At a time of acute geopolitical instability, fuelled in part by the return of Donald Trump to the White House, it is overwhelmingly in the interests of both countries, and Europe as a whole, that a fully functioning entente cordiale is restored. The arrival of Mr Macron in London on Tuesday for a state visit – the first by a French president since 2008 – confirms the successful work done to that end by Sir Keir Starmer over the past year. In relation to strengthening European defence and security, and supporting Ukraine's ability to continue to resist Vladimir Putin, the two leaders have forged a close working relationship, which this trip will help consolidate. The symbolism of the event – Mr Macron is the first European leader to be so honoured since Brexit – will also do no harm to Sir Keir's chances of making progress with his somewhat ill-defined aspirations for a 'reset' with the EU. Much of the president's time, naturally, will be taken up with pomp, circumstance and protocol, including a state dinner at Windsor Castle and a joint address to both Houses of Parliament. A warm welcome can be expected for Mr Macron and his wife, Brigitte, from King Charles, a devout Francophile. But it also seems likely that some meaningful political business will be done. On Thursday, Sir Keir and Mr Macron will co-host a video conference with European allies to again discuss the creation of a 'reassurance force', which could be deployed to Ukraine in the event of a ceasefire. More immediately relevant perhaps, given the stalled status of peace negotiations with Mr Putin, will be a simultaneous focus on how to maintain Ukraine's fighting capabilities without relying on a reluctant Mr Trump. On the ever-more vexed issue of small boat crossings in the Channel, a potential pilot scheme to return irregular migrants to France in exchange for others with family connections in Britain may be unveiled. Anti-immigrant sentiment has been, for both leaders, a contributory factor to domestic political woes and falling poll ratings. But on the world stage Sir Keir and Mr Macron have responded impressively, and largely in tandem, to the challenges of a new era in which great power rivalry and strongman politics threaten to undermine liberal values and international law. It will not have been lost on Mr Trump, who will make a second state visit to Britain in the autumn, that Mr Macron has stolen a march on him this time. For a number of reasons, from the need to heal the diplomatic wounds of Brexit to sending a signal of European solidarity and resilience in turbulent times, that is as it should be.
Reuters
17 minutes ago
- Reuters
World Court to issue climate change opinion on July 23
THE HAGUE, July 7 (Reuters) - The top United Nations court will on July 23 issue a nonbinding opinion on countries' legal obligation to fight climate change, a decision expected to be cited in climate change-driven litigation around the world, the court said on Monday. The so-called advisory opinion of the International Court of Justice, also known as the World Court, is also expected to address whether large states contributing the most to greenhouse-gas emissions should be liable for damage caused to small island nations. The Inter-American Court of Human Rights issued a similar opinion last week finding that its 20 Latin American and Caribbean member states must cooperate to tackle climate change and not take actions that set back environmental protections. During two weeks of hearings before the World Court in December, wealthy countries of the global north broadly argued that existing climate treaties like the Paris Agreement, which are largely nonbinding, should be the basis for deciding countries' responsibilities. Developing nations and small island states bearing the brunt of climate change argued for robust measures to curb emissions and require financial support from wealthy polluting nations. The World Court's advisory opinion is part of a global wave of climate litigation as countries, organizations and individuals are increasingly turning to courts for climate action. While nonbinding, the court's interpretations of law carry a lot of legal and political weight. Experts say its opinion could set a precedent in climate change-driven lawsuits in courts from Europe to Latin America and beyond.
The Independent
19 minutes ago
- The Independent
Starmer fights to save ‘one-in-one-out' migrant deal during Macron state visit
Sir Keir Starmer is facing a fight to salvage his much-vaunted deal with France to return illegal migrants and halt increasing crossings of small boats across the English Channel. With Emmanuel Macron arriving on Tuesday a three-day state visit, there are concerns the prime minister's 'one in, one out' agreement is close to collapse. It is understood Sir Keir hoped the agreement would be the centrepiece of the French president's state visit, but it has stalled amid opposition from other EU countries. Italy, Spain, Greece, Malta and Cyprus wrote to the European Commission over the proposals, fearing it could see asylum seekers returned to their shores instead. It is understood that migration will be front and centre of talks between Sir Keir and president Macron in Downing Street on Wednesday, with discussions over 'returns hubs' and new tactics by French border police expected to feature heavily on the agenda. Officers were seen last week slashing inflatable boats with knives to prevent them leaving French shores. Downing Street insists the deal is not dead, but admitted the picture is 'complex' as Britain is on course for a new record in illegal crossings. The Channel migrant crisis, which helped destroy the last Tory government, appears to be dogging Sir Keir after a difficult first year as prime minister; his mantra of 'smash the gangs' and tackling the backlog of asylum cases has not reduced the numbers attempting dangerous crossings. A Downing Street spokesperson said Sir Keir and president Macron have 'an excellent working relationship', adding that Britain's 'joint work with the French which is stronger than it's ever been'. Asked about the 'one-in-one-out' agreement, the spokesperson said: 'I wouldn't comment on specific things ahead of a summit. We can expect progress on a wide range of priorities including migration, but I'm not going to speculate on specifics ahead of a summit that is yet to take place.' The leaders will also discuss defence and their joint efforts to create a 'coalition of the willing' to maintain any peace deal to end the war in Ukraine. Ahead of the visit, the pair spoke on the phone on Saturday, where they said they wanted to make "good progress" on a series of joint issues, including migration. Macron is to have the rare honour of addressing a joint sitting of the Houses of Parliament on Tuesday before being the guest of honour at an evening banquet hosted by King Charles. The prime minister is under growing pressure to get a grip on the numbers of small boats crossing the Channel after figures published last week showed that a record number of people made the journey in the first six months of this year. Home Office data shows a total of 19,982 people have arrived in the UK since the start of 2025 – the highest total for the halfway point of the year since data was first collected on migrant crossings in 2018. The prime minister has been struggling to bring down both the number of boat crossings and the amount of money spent on housing asylum seekers in hotels across the UK. But he has also faced criticism from left-wing Labour MPs and refugee charities, who have accused Sir Keir of attempting to copy Reform UK's inflammatory rhetoric. Ahead of the visit, Sir Keir and Mr Macron spoke over the phone on Saturday, where they said they wanted to make 'good progress' on a series of joint issues, including migration.
