Leasehold remains a “life sentence”, a leading campaigner warns – on the day that the Government announced new leaseholder protections would be implemented ‘from next year’.

Katie Kendrick OBE, Founder of the National Leasehold Campaign, (pictured) says: “Leasehold remains a life sentence. Despite nearly a decade of commitments, progress has been too slow, too limited, and too easily diluted.

“As a result, too many leaseholders remain trapped – unable to sell, unable to move, and facing costs they cannot afford.”

She adds: “This is not just a failure for leaseholders – it is a failure of the housing market.”

Soaring service charges

Her comments came just hours after the Government issued a statement saying that it was announcing new measures to protect leaseholders.

It promised that the measures would come into force “as soon as possible from 2027”.

In the meantime, leaseholders continue to face soaring service charges that are deterring some mortgage providers from lending on this type of property – making them effectively unsellable.

This is not just a failure for leaseholders – it is a failure of the housing market.”

Government announcement

The Government’s announcement was in response to an official consultation last year, and follows the Leasehold and Freehold Reform Act 2024.

It insists that the new measures will see leaseholders be provided with greater transparency around service charges and stronger powers to challenge unfair costs.

Practical changes

The changes will mean landlords will have to provide leaseholders with an annual report outlining the condition of their building and any plans for major works.

Meanwhile, a new service charge demand form will set out detailed information about what charges cover.

In addition, fire safety information and maintenance invoices – going back up to six years – must be provided on request by landlords.

More consultations

The Government has also confirmed that two further consultations have been launched to help make it easier for leaseholders to extend their lease or buy their freehold.

These will explore plans to set specific valuation rates in regulations, reducing disputes about costs, and give leaseholders greater certainty about the price they will pay to enfranchise – as well as protect leaseholders from covering their landlord’s solicitor, valuer or administrative fees when going through the process.

The measures will add to the upcoming Commonhold and Leasehold Reform Bill, which will ban leasehold for new flats and cap ground rents at £250.