The Guardian view on trapped leaseholders: Labour must keep its promise to set them free | Editorial
The government pledged to end an unfair system. Ministers must give homeowners power over costs, rather than another place to complain “To the millions of leaseholders across the country, you have my word. The days of you being squeezed for every penny are coming to an end,” Andy Burnham told the Labour party conference . Only a few hours earlier, his housing secretary, Angela Rayner, had…
The government once pledged to bring an unfair leasehold system to an end, but progress remains limited. Labour leader Andy Burnham vowed to grant homeowners control over costs during the party conference, while housing secretary Angela Rayner announced the establishment of an independent regulator and a consultation on capping excessive fees.
However, the current system still transforms homes into income-generating assets for freeholders, putting a strain on the housing market. The average annual service charge for a flat in England and Wales stands at £2,405, a staggering 32.6% increase since 2020 and 55.6% over the past decade. In some high-rise blocks in London, service charges exceed £7,000 annually.
Consequently, prospective buyers, particularly first-time buyers, are increasingly turning away from flats. Despite the government's intentions, powerful interests, including billionaires, aristocrats, and big businesses, oppose dismantling the leasehold system.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
