Long-awaited legislation to abolish England’s “feudal” leasehold property system will be published in the second half of next year, the government has confirmed in a major update for the millions of people affected.
In a Written Ministerial Statement (WMS), housing minister Matthew Pennycook gave the first details of how quickly Labour intend to axe the controversial form of homeownership, as promised in their manifesto.
The minister said there will be a consultation and white paper early next year to get the plan in motion, with the aim to make commonhold “the default tenure” by the end of parliament in 2029.
The news has drawn a mixed reaction from those caught up in the system, with some hailing an end in sight and others saying it is too little too late.
What is leasehold?
Leasehold is a centuries-old form of tenure that is unique to England and Wales. People who buy their home with a lease buy the right to live there for a given number of years but don’t own the land itself, regardless of whether it is a house, or a flat in a building.
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That is the preserve of the freeholder, who can charge expensive ground rents simply for owning the land, as well as service charges for the maintenance and insurance of the properties.
There have long been concerns around leaseholders being exploited, especially by unregulated managing agents who are typically contracted to oversee the day-to-day running of buildings and can charge large fees on any works they arrange.
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Michael Gove in 2023: Leasehold ‘unfair form of property ownership’.
Criticism intensified after the building safety scandal that emerged post-Grenfell with many homeowners facing crippling bills for remediation, leaving them stuck in worthless properties they cannot sell.
That’s the case for leaseholder Peter Batt, who has not been able to live in his “once lovely” flat in Kent for the past nine months because the roof of the building has “completely failed and is disintegrating”.
This has caused damp, black mould and leaks so severe his neighbour’s ceiling below him has collapsed
The problems were raised to the building’s managing agents in February but no remediation has occurred.
Image: Hole in the roof at Mr Batt’s building
Image: Hole in the ceiling due to leaks
Image: Black mould on Mr Batt’s bathroom wall
Last week he was told he’d need to cough up £18,000 for his share of the works before any repairs can go ahead – money the 60-year-old doesn’t have.
“I genuinely see no way out unless I win the lottery, it’s been an utter nightmare”, he told Sky News.
Mr Batt and his neighbours want a temporary tin hat cover to be prioritised, given this was recommended by surveyors back in April to stop the situation deteriorating – which they say it now has.
Image: Broken ceiling in Mr Batt’s neighbour’s flat
Image: Ceiling hole
Image: Peter Batt, 60
But they have “no say over this despite shouldering all the costs”, Mr Batt added.
“The government need to look at root-and-branch reform because, in my experience, all the parties currently charged with maintaining building such as my own are incentivised almost solely around maintaining their revenue stream.
“Under the current system, no one is on the leaseholders’ side and that has to change.”
‘Death knell of leasehold’
In his WMS, Mr Pennycook said the government will introduce a “comprehensive new legal framework” on commonhold, including banning the sale of leasehold flats and converting existing leasehold tenures to the new model.
Proponents of commonhold say it would drive up safety standards, as it would give flat owners more control of the maintenance of a building while removing the cash incentive for developers to build homes on the cheap – knowing leaseholders can pick up the costs.
Image: Housing minister Matthew Pennycook
Sebastian O’Kelly, of the Leasehold Knowledge Partnership, welcomed today’s announcement as the “death knell of leasehold”.
He advised people not to buy leasehold properties as “the market will force pace on this”, pointing out that some developers have recently come out in support of commonhold while others “whose reputations have been shredded by the Grenfell findings will follow”.
He told Sky News: “With this momentum the reforms to improve the blighted lives of existing leaseholders will be eased. Government may think this process will be slow, but house builders will know that the leasehold game they have played so assiduously is busted.”
Delay in implementing Tories’ ‘half-baked’ reforms
But there was a more muted response from the National Leasehold Campaign, which has spent six years trying to dismantle the system.
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‘Exorbitant’ ground rents for ‘no service’
As well as announcing a roadmap for abolishing leasehold, Mr Pennycook set out a timeline for implementing reforms in the Tories’ Leasehold and Freehold Reform Act (LFRA), which just about made wash-up when Rishi Sunak called the July election, after being watered down by then housing secretary Michael Gove.
The LFRA promised to abolish leaseholds on new houses but not new flats, which make up 70% of the estimated 5 million leasehold properties in England.
It also aimed to give leaseholders more rights and protections, but Mr Pennycook said the act was “half baked” so there would be delays in implementing some of its measures.
Crucially, that includes rules around new valuations, which will be consulted on next summer, he said.
‘Endless cash cow continues’
The NLC called this “very disappointing” as the mechanism was designed to make it quicker and cheaper for people to buy their freehold or extend their lease “enabling them to sell their properties and move on with their lives”.
Image: The National Leasehold Campaign wants to see the system abolished
“Our main concern now is the fate of existing leaseholders who are currently suffering at the mercy of unregulated managing agents and unscrupulous freeholders,” it added.
“The government’s published intention to ‘act as quickly as possible’ will not be quick enough and we are already seeing the despair from some NLC members who are facing bankruptcy due to escalating service charges.
“Since 2018, leaseholders have heard time and time again from former government ministers that they will end the abuses but in reality nothing has changed for existing leaseholders. Using our homes as an endless cash cow continues and millions remain trapped.”
“Return hubs” that would see Britain send failed asylum seekers to another country have been endorsed by the UN’s refugee agency.
There have been reports that Sir Keir Starmer’s government is looking into deporting illegal migrants to the Balkans.
According to The Times, Home Secretary Yvette Cooper met the UN’s high commissioner for refugees last month to discuss the idea.
It would see the government pay countries in the Balkans to take failed asylum seekers – a prospect ministers hope might discourage people from crossing the Channel in small boats.
A total of 9,099 migrants have made that journey so far this year, including more than 700 on Tuesday this week – the highest number on a single day in 2025.
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One dead in Channel crossing
The UN’s refugee agency has set out how such hubs could work while meeting its legal standards in a document published earlier this week.
It recommended monitoring the hubs to make sure human rights standards are “reliably met”.
The country hosting the return hub would need to grant temporary legal status for migrants, and the country sending the failed asylum seekers would need to support it to make sure there are “adequate accommodation and reception arrangements”.
A UK government source said it was a helpful intervention that could make the legal pathway to some form of return hub model smoother.
It comes after the EU Commission proposed allowing EU members to set up so-called “return hubs” abroad, with member state Italy having already started sending illegal migrants abroad.
It sends people with no right to remain to Italian-run detention centres in Albania, something Sir Keir has taken an interest in since coming to power.
With Reform UK leading Labour in several opinion polls this year, the prime minister has been talking tough on immigration – but the figures around Channel crossings have made for difficult reading.
Lib Dems don’t tend to listen to right-wing podcasts.
But if they did, they may be heartened by some of what they hear.
Take the interview Kemi Badenoch gave to the TRIGGERnometry show in February.
Ten minutes into the episode, one of the hosts recounts a conversation with a Tory MP who said the party lost the last election to the Lib Dems because they went too far to the right.
Everyone laughs.
Then in March, in a conversation with the Canadian psychologist Jordan Peterson, the Tory leader was asked to describe a Liberal Democrat.
“Somebody who is good at fixing their church roof,” said Ms Badenoch.
She meant it as a negative.
Lib Dems now mention it every time you go near any of them with a TV camera.
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‘It’s a two-horse race!’
The pitch is clear, the stunts are naff
At times, party figures seem somewhat astonished the Tories don’t view them as more of a threat, given they were beaten by them in swathes of their traditional heartlands last year.
Going forward, the pitch is clear.
Sir Ed Davey wants to replace the Tories as the party of middle England.
Image: Sir Ed rides on a rollercoaster. Pic: PA
One way he’s trying to do that is through somewhat naff and very much twee campaign stunts.
To open this local election race, the Lib Dem leader straddled a hobbyhorse and galloped through a blue fence.
More recently, he’s brandished a sausage, hopped aboard a rollercoaster and planted wildflowers.
Senior Lib Dems say they are “constantly asking” whether this is the correct strategy, especially given the hardship being faced by many in the country.
They maintain it is helping get their message out though, according to the evidence they have.
“I think you can take the issues that matter to voters seriously while not taking yourself too seriously, and I also think it’s a way of engaging people who are turned off by politics,” said Sir Ed.
Image: Sir Ed on a hobby horse during the launch of the party’s local election campaign in the Walled Garden of Badgemore Park in Henley-on-Thames. Pic: PA
Pic: PA
‘What if people don’t want grown-ups?’
In that way, the Lib Dems are fishing in a similar pool of voters to Reform UK, albeit from the other side of the water’s edge.
Indeed, talk to Lib Dem MPs, and they say while some Reform supporters they meet would never vote for a party with the word “liberal” in its name, others are motivated more by generalised anger than any traditional political ideology.
These people, the MPs say, can be persuaded.
But this group also shows a broader risk to the Lib Dem approach.
Put simply, are they simply too nice for the fractured times we live in?
“The Lib Dems want to be the grown-ups in the room,” says Joe Twyman, director of Delta Poll.
“We like to think that the grown-ups in the room will be rewarded… but what if people don’t want grown-ups in the room, what if people want kids shitting on the floor.”
Image: Sir Ed canoeing in the River Severn in Shrewsbury, Shropshire. Pic: PA
A plan that looks different to the status quo
The party’s answer to this is that they are alive to the trap Lib Dems have walked into in the past of adopting a technocratic tone and blandly telling the public every issue is a “bit more complicated” than it seems.
One senior figure says the Lib Dems are trying to do something quite unusual for a progressive centre-left party in making a broader emotional argument about why the public should pick them.
This source says that approach runs through the stunts but also through the focus on care and the party leader’s personal connection to the issue.
Presenting a plan that looks different to the status quo is another way to try to stand apart.
It’s why there has been a focus on attacking Donald Trump and talking up the EU recently, two areas left unoccupied by the main parties.
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‘A snivelling cretin’: Your response?
The focus on local campaigning
But beyond the national strategy, Lib Dems believe it’s their local campaigning that really reaps rewards.
In the run-up to the last election, several more regional press officers were recruited.
Many stories pumped out by the media office now have a focus on data that can be broken down to a constituency level and given to local news outlets.
Party sources say there has also been a concerted attempt to get away from the cliche of the Lib Dems constantly calling for parliament to be recalled.
“They beat us to it,” said one staffer of the recent recall to debate British Steel.
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Steel might have been ‘under orders’ from China
‘Gail’s bakery rule’
This focus on the local is helped by the fact many Lib Dem constituencies now look somewhat similar.
That was evidenced by the apparent “Gail’s bakery rule” last year, in which any constituency with a branch of the upmarket pastry purveyor had activists heaped on it.
The similarities have helped the Lib Dems get away from another cliche – that of the somewhat opportunist targeting of different areas with very different messages.
“There is a certain consistency in where we won that helps explain that higher vote retention,” said Lib Dem president Lord Pack.
“Look at leaflets in different constituencies [last year] and they were much more consistent than previous elections… the messages are fundamentally the same in a way that was not always the case in the past.”
Image: Sir Ed in a swan pedalo on Bude Canal in Cornwall. Pic: PA
A bottom-up campaign machine
New MPs have also been tasked with demonstrating delivery and focusing doggedly on the issues that matter to their constituents.
One Home Counties MP says he wants to be able to send out leaflets by 2027, saying “everyone in this constituency knows someone who has been helped by their local Lib Dem”.
In the run-up to last year’s vote, strategists gave the example of the Lib Dem candidate who was invited to a local ribbon-cutting ceremony in place of the sitting Tory MP as proof of how the party can ingratiate itself into communities.
With that in mind, the aim for these local elections is to pick up councillors in the places the party now has new MPs, allowing them to dig in further and keep building a bottom-up campaign machine.
‘Anyone but Labour or Conservative’
But what of the next general election?
Senior Lib Dems are confident of holding their current 72 seats.
They also point to the fact 20 of their 27 second-place finishes currently have a Conservative MP.
Those will be the main focus, along with the 43 seats in which they finished third.
There’s also an acronym brewing to describe the approach – ABLOC or “Anyone but Labour or Conservative”.
Image: Keir Starmer and Kemi Badenoch aren’t exactly flying high in the opinion polls
9% swing could make Sir Ed leader of the opposition
The hope is for the political forces to align and Reform UK to continue splitting the Tory vote while unpopularity with the Labour government and Conservative opposition triggers some to jump ship.
A recent pamphlet by Lord Pack showed if the Tories did not make progress against the other parties, just 25 gains from them by the Lib Dems – the equivalent of a 9% swing – would be enough to make Sir Ed leader of the opposition.
What’s more, a majority of these seats would be in the South East and South West, where the party has already picked up big wins.
As for the overall aim of all this, Lord Pack is candid the Lib Dems shouldn’t view a hung parliament as the best way to achieve the big prize of electoral reform because they almost always end badly for the smaller party.
Instead, the Lib Dem president suggests the potential fragmentation of politics could bring electoral reform closer in a more natural way.
“What percentage share of the vote is the most popular party going to get at the next general election, it’s quite plausible that that will be under 30%. Our political system can’t cope with that sort of world,” he said.
Whether Ms Badenoch will still be laughing then remains to be seen.
This is part of a series of local election previews with the five major parties. All five have been invited to take part.
It would be “foolish” to stop engaging with China, the chancellor has said, as Sir Keir Starmer held his first call with Donald Trump since he put 10% tariffs on goods imported from the UK.
Rachel Reeves will hold talks with the US next week amid efforts to establish a trade deal, which the government hopes will take the sting out of the president’s tariffs.
There has been speculation Washington may press the government to limit its dealings with China as part of that deal, having launched a tit-for-tat trade war with its economic rival.
But Ms Reeves told The Daily Telegraph:”China is the second-biggest economy in the world, and it would be, I think, very foolish, to not engage.
“That’s the approach of this government.”
She suggested she would back the fast fashion firm Shein launching an initial public offering (IPO) in the UK, saying the London Stock Exchange and Financial Conduct Authority have “very strict standards” and “we do want to welcome new listings”.
Shein, which was founded in China but is now based in Singapore, has faced several obstacles to its efforts to float, including UK political pressure over alleged supply chain and labour abuses.
Image: Sir Keir Starmer and Donald Trump met in February. Pic: PA
‘Productive discussions’
When it comes to a UK-US deal, The Daily Telegraph has reported officials in Washington believe an agreement could be weeks away.
But on Thursday, Mr Trump said he was in “no rush” to reach any deals because of the revenues his new tariffs are generating.
During Sir Keir’s call with the US president on Friday, the two leaders talked about the “ongoing and productive discussions” on trade between the two nations, according to a Downing Street spokesperson.
“The prime minister reiterated his commitment to free and open trade and the importance of protecting the national interest,” Number 10 said.
As well as the 10% levy on all goods imported to America from the UK, Mr Trump enacted a 25% levy on car imports.