Tory MPs warn of rebellion over ‘broken’ leasehold reform promises

Michael Gove (main image) is facing yet another rebellion within his own ranks after 30 MPs last night wrote to the Chancellor to highlight their anger over the watering down of the Leasehold Reform Bill.

The Government had originally said it would scrap ground rents or make them peppercorn which, at the time, housing secretary Gove said was a ‘charge for nothing’ but recently said the changes would only affect new leaseholds.

But a row has now broken out over whether this was a part of the party’s 2019 manifesto or not.

That manifesto said: “We will continue with our reforms to leasehold including implementing our ban on the sale of new leasehold homes, restricting ground rents to a peppercorn, and providing necessary mechanisms of redress for tenants”.

The rebel MPs are insisting Sunak and Gove stick to this manifesto promise, but the British Property Federation says this is a ‘grave misunderstanding’, arguing that is covered ‘new’ leaseholds and was not a retrospective promise.

Misunderstanding

Ian Fletcher, its Director of Policy (Real Estate, says: ““There seems to be a grave misunderstanding that the 2019 Conservative Manifesto somehow confirmed a mandate for the party to retrospectively abolish ground rents on leasehold properties.

“This is a view which has been carried over by a group of parliamentarians who are seeking to go beyond the intent and spirit of what that manifesto contained.

“The then Minister, Lord Greenhalgh, clearly stated in a House of Lords debate in 2021 that the Conservative Government’s formal position was not to abolish existing ground rents, due to the material negative impact that would have on pension savers, but only stop new ground rents being created.

“At best, the manifesto commitment is ambiguous, and in light of previous statements certainly does not provide the clear mandate proponents of abolition claim.”

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