Leasehold and cladding reforms formed key components of the King’s Speech today.

Speaking at the State Opening of Parliament in the House of Lords, King Charles confirmed the Government’s promise to reform leasehold, while at the same time speeding up unsafe cladding repairs.

In his speech, the King described housing as “a source of insecurity for many people”.

He said: “My Ministers will bring forward legislation to increase long-term investment in social housing and to reform the leasehold system, including the capping of ground rents.”

Reforming leasehold

The reform of the leasehold system is outlined in the Commonhold and Leasehold Reform Bill.

The Leasehold and Commonhold Reform Bill is already progressing through the legislative process, and is expected to expand leaseholders’ rights to extend leases and purchase freeholds in England and Wales.

It also plans to cap ground rents at £250 a year, moving to a peppercorn rent after 40 years, following draft legislation published earlier this year.

Unsafe cladding

The King also confirmed that the Government would “speed up remediation for people living in homes with unsafe cladding.”

The Government’s Building Safety Remediation Bill is aimed at strengthening building safety standards following the 2017 Grenfell Tower fire.

Reform must be carefully phased to avoid market disruption.”

Timothy Douglas, Head of Policy and Campaigns at Propertymark, said: “We support action to address longstanding issues within the leasehold system, including excessive ground rents, unfair charges and greater transparency for consumers. We now need to see these reforms progress at pace, with clear timelines and delivery, to provide certainty and confidence for consumers and the wider housing sector.

“We acknowledge the UK Government’s ambition to make commonhold the default tenure for new flats and to strengthen leaseholder rights. However, reform must be carefully phased to avoid market disruption and ensure existing leaseholders, property agents, and developers can transition effectively to any new system.”

He added: “It is positive to see plans to accelerate remediation works and strengthen accountability for unsafe buildings. Leaseholders and residents have faced unacceptable delays and uncertainty for too long. The UK Government must ensure remediation funding, enforcement powers and clear legal responsibilities are implemented quickly so that affected residents are protected, and confidence can return to the housing market.”

Grenfell Tower

Feudal system

Meanwhile, the housing minister Matthew Pennycook, said: “This Government made a clear and unambiguous commitment to bring the feudal leasehold system to an end. The Commonhold and Leasehold Reform Bill marks the beginning of the end for the leasehold system that has tainted the dream of homeownership for so many.  

“This Bill, previously published in draft, will transform the experience of homeownership for millions of leaseholders across the country, modernise property law and deliver a modern housing market.”