There is a growing calls for the government to ban new leasehold flats in England and Wales. Here are the key points:

1. Leasehold Reforms: The government has faced calls to ban new leasehold flats, following its decision to include a ban on the sale of new leasehold houses in a recently introduced bill. Minister Baroness Penn has stated that while a ban on leasehold houses will be added to the bill as soon as possible, abolishing leasehold for flats is considered “more complicated.”
2. Current Leasehold System: The current leasehold system requires leaseholders to pay ground rent and costly maintenance charges as they only own the lease, giving them the right to use the property for a fixed term but not the land it is built on.
3. Introduced Bill: The bill, introduced to Parliament, aims to make it easier and cheaper for homeowners to extend their lease or buy their freehold. However, it does not include a ban on new leasehold flats.
4. Commonhold System: Campaign groups and some political parties advocate for replacing the leasehold system with a commonhold system for new flats. Commonhold allows occupants to jointly own and take responsibility for their buildings without an expiring lease.
5. Parliamentary Discussion: In the House of Lords, Labour and some Tory peers expressed disappointment that new leasehold flats were not included in the bill. Baroness Penn explained that reforms for flats were more complicated but affirmed the government’s commitment to reinvigorating commonhold as an alternative to leasehold.
6. Potential Amendments: Some Tory peers suggested that the bill could be amended in the House of Lords to address concerns about the leasehold system. However, Baroness Penn emphasized that the focus of the current bill is on making existing leases fairer and more affordable.
7. Calls for Further Action: Campaigners, including the founder of the National Leasehold Campaign, Katie Kendrick, argue that reform is overdue and advocate for a ban on new leasehold flats. There are also suggestions, including from campaigner Harry Scoffin, for the government to require a “share of freehold” on new apartment schemes.
8. Labour’s Position: Labour has indicated it would support moves to strengthen the bill regarding flats. The party has expressed its intention to make commonhold the default tenure for all new properties if it comes into power.
9. Government’s Response: The government acknowledges the complexity of leasehold reform and emphasizes the importance of taking the time to get things right. Baroness Penn reassures that the government intends to bring forward clauses for Parliament’s scrutiny at the earliest opportunity.

In summary, the discussion revolves around the government’s response to calls for leasehold reforms, particularly concerning new flats, with a focus on the complexities involved and the commitment to address these issues in due course.