Government unveils leasehold reform and social housing investment in King’s Speech

King Charles has delivered the King’s Speech setting out the government’s legislative agenda.

Among the proposals was the Commonhold and Leasehold Reform Bill, which will cap ground rents at £250 a year for leaseholders and aims to “bring an end to the feudal leasehold system”.

Other proposals include investment in social housing and a Building Safety Remediation Bill.

Greater transparency and improve long-term accountability

In the speech, King Charles said the government would bring forward legislation to “increase long-term investment in social housing and reform the leasehold system, including the capping of ground rents”.

The government will also introduce a bill aimed at supporting remediation for people living in homes with unsafe cladding.

Robert Poole, managing director block management, Glide Property Management, part of LRG, said the King’s Speech set out the government’s direction on leasehold reform.

He said: “The King’s Speech provides further clarity on the government’s direction of travel around leasehold reform and commonhold.

“Greater transparency, stronger resident protections and improved long-term accountability across the sector are all positive ambitions, but the effectiveness of any reforms will depend on how workable and sustainable they prove in practice.

“Ground rent is only one part of the wider cost picture for residents. For many leaseholders and homeowners, the more pressing issues are service charges, estate charges, insurance costs and major works, particularly how these costs are structured, explained and challenged over time.

“That is why the detail behind the next phase of reform matters as much as the headline announcements.”

Move faster on leasehold reform

Timothy Douglas, head of policy and campaigns at Propertymark, says the government must move faster on leasehold reform.

He said: “Propertymark welcomes the UK government’s continued focus on leasehold reform as we support action to address longstanding issues within the leasehold system, including excessive ground rents, unfair charges and greater transparency for consumers. We now need to see these reforms progress at pace, with clear timelines and delivery, to provide certainty and confidence for consumers and the wider housing sector.”

He adds: “We acknowledge the UK government’s ambition to make commonhold the default tenure for new flats and to strengthen leaseholder rights. However, reform must be carefully phased to avoid market disruption and ensure existing leaseholders, property agents, and developers can transition effectively to any new system.

“Propertymark has consistently called for clearer standards, improved transparency around service charges, professional qualifications for property agents, and practical reforms that improve consumer confidence across the housing market.”

Building work is carried out appropriately

Mr Douglas adds: “It is positive to see plans to accelerate remediation works and strengthen accountability for unsafe buildings. Leaseholders and residents have faced unacceptable delays and uncertainty for too long.

“The UK government must ensure remediation funding, enforcement powers and clear legal responsibilities are implemented quickly so that affected residents are protected, and confidence can return to the housing market.

“Reforms to the housing sector can support economic growth and allow people to get on in life, but there must also be a much stronger focus on reducing and removing property taxation to make it quicker, easier and more affordable for people to move and get onto the housing ladder, while also helping to reduce cost pressures on landlords, which in turn brings down the cost of renting for tenants.

“Propertymark will continue to engage with policy makers and the UK government to ensure the housing market works for all.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says building safety reforms need to be implemented effectively.

He said: “It is absolutely fundamental that building work is carried out appropriately to reduce the risk of problems occurring in the wake of the Grenfell disaster.

“However, the delay in implementing the changes required is compromising market activity and in some cases, preventing new work going ahead at a time when there are so many other reasons for builders and developers not to put spades in the ground.”