UK to Abolish Leasehold, Build 1.5 Million Homes

The UK government plans to abolish the leasehold system in England and Wales, making commonhold the default tenure to empower homeowners with greater control over their properties. Under the proposed reforms, new leasehold flats will be banned, ending a system that has subjected homeowners to unfair practices and unreasonable costs, such as inflated service charges. Housing Minister Matthew Pennycook emphasized that this move fulfills a manifesto commitment, aiming to provide immediate relief to current leaseholders and align the UK housing model with more equitable systems used globally. The draft Leasehold and Commonhold Reform Bill, outlining the new legal framework, is expected later this year. Critics of the leasehold system, including freeholders, argue it is effective for managing complex buildings, but the government is determined to transition to commonhold to enhance homeowner rights and security. The changes are part of broader plans to tackle the housing crisis by building 1.5 million homes and improving living standards.