Andy Burnham has announced his commitment to introducing legislation that enables leaseholders to transition to commonhold ownership, marking a significant shift in property rights for millions across England and Wales. Speaking at his first appearance at the House of Commons despatch box since becoming Prime Minister, Burnham pledged to “reform this unfair system” which affects around five million leaseholders.
The proposed Commonhold and Leasehold Reform Bill aims to ban the issue of new leasehold flats, replacing them with commonhold arrangements where residents collectively own and manage their buildings. This change is intended to give homeowners greater control over their properties and reduce the burden of unfair charges.
Burnham emphasised the Government’s focus on tackling the cost-of-living crisis by addressing areas where people face unavoidable and unjust expenses, spotlighting the leasehold system as a prime example. “It is my intention, the intention of the Government, to bring forward that Commonhold and Leasehold Bill, so that finally we can reform this unfair system, and we will do that in this session,” he stated.
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The Bill is expected to include new protections against exploitative ground rent charges and simplify the process for existing leaseholders to switch to commonhold ownership. It also plans to introduce a new right for homeowners to request faster broadband connections if it becomes law.
Expert opinion supports this move. Dr Cathy Sherry, a Professor at Macquarie Law School and a technical adviser to the Law Commission’s review of commonhold, acknowledges that while no property ownership system is without flaws, the transition to commonhold is a positive step. She notes that the leasehold model is “deeply unfair” and highlights its colonial origins, explaining how British working-class settlers opposed the establishment of a landed aristocracy through their housing arrangements.
Makerfield MP Andy Burnham concluded: “The Government I lead will be relentless, relentless in giving people and places what they were promised 10 years ago: ownership and control. And from that control over their destiny comes change and growth.”