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Burnham vows to reform 'unfair' leasehold system impacting millions of homeowners

The PM made the pledge during his first appearance at the House of Commons despatch box since taking office

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Row of painted terrace houses, Isle of Portland, Dorset, UK
Row of painted terrace houses, Isle of Portland, Dorset, UK. Picture: Alamy

By Georgia Rowe

Andy Burnham has committed to bringing forward legislation to allow people to move from leasehold to commonhold home ownership within this parliamentary session.

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The Prime Minister pledged to “reform this unfair system” during his first appearance at the House of Commons despatch box since taking office.

Under the current framework, homeowners pay recurring ground rents to occupy the land underneath their buildings.

New protections against unfair ground rent charges and easier routes for existing leaseholders to switch to commonhold form part of the Commonhold and Leasehold Reform Bill.

The Bill would also give homeowners a new right to request a faster broadband connection, if it became law.

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Prime Minister Andy Burnham leaves 10 Downing Street as he prepares to make his first appearance in the House of Commons since becoming Prime Minister.
Prime Minister Andy Burnham leaves 10 Downing Street as he prepares to make his first appearance in the House of Commons since becoming Prime Minister. Picture: Alamy

Speaking in the Commons on Tuesday, Mr Burnham said: “I’m looking at every facet of the cost-of-living crisis and where people face unfair charges that they can’t avoid, and this area of leasehold is absolutely in that territory.”

He added: “It is my intention, the intention of the Government, to bring forward that Commonhold and Leasehold Bill, so that finally we can reform this unfair system, and we will do that in this session.”

A draft version of the legislation was published in January this year, under Sir Keir Starmer’s leadership, and was included in the King’s Speech.

Since 2022, landowners have been banned from charging ground rents in most new residential leasehold properties throughout England and Wales.