Martin Lewis tells Labour to 'get a handle on this' after yet another leasehold delay

Martin Lewis called for idiosyncratic to 'get a grip on' the eye-watering fees facing millions of homeowners (Image: ITV)

Homeowners are facing yet different hold successful addressing the "feudal" leasehold system's pitfalls, arsenic reforms to eradicate sky-high crushed rents and exorbitant admin fees person been shelved erstwhile more. In what appeared to beryllium a argumentation connected the verge of implementation this twelvemonth aft swift parliamentary enactment during the Conservative Party's last days successful power, hopes person been dashed.

Labour's Housing Minister, Matthew Pennycook, informed the House of Commons connected Wednesday that the brunt of The Leasehold and Freehold Reform Act 2024 is being kicked into the agelong grass.

Renowned user champion and laminitis of Money Saving Expert, Martin Lewis, sharply criticised the intermission successful proceedings. Mr Lewis voiced the vexation of galore leaseholders, remarking, "I tin astir perceive the corporate groan of leaseholders astatine yet different hold successful sorting the leasehold messiness out. Someone truly needs to get a grip connected this.."

At the bosom of the statement lies a fiscal load for countless homeowners who person taken connected leasehold properties—usually acceptable with a word of 99 years. These individuals find themselves astatine the mercy of their leaseholders, who not lone levy important yearly crushed rents but besides enforce hefty "service charges."

Homeowners were acceptable to person much rights, powerfulness and protections implicit their homes nether the Leasehold and Freehold Reform Act (Image: File)

Labour has pledged to tackle the antiquated leasehold strategy "as rapidly arsenic possible" aiming to dismantle a model dating backmost to the 13th century, designed for feudal lords to extract crushed rents from peasant farmers. Yet, arsenic the captious authorities was expedited during the "wash up" play earlier the July wide election, Labour's Housing Minister Matthew Pennycook highlighted important shortcomings successful the Commons, reports the Manchester Evening News.

He stated: "These superior flaws see a loophole which means the Act goes acold beyond the intended reforms to valuation and that undermines the integrity of the amended scheme. In summation we indispensable close an omission that would contradict tens of thousands of shared ownership leaseholders the close to widen their lease with their nonstop landlord fixed that the providers successful question bash not person sufficiently agelong leases to assistance 990-year extensions."

Pennycook added: "This authorities volition not marque the aforesaid mistakes arsenic the past erstwhile it comes to reforming what is, without question, an incredibly analyzable country of spot law. While we mean to proceed to enactment astatine pace, we volition instrumentality the clip indispensable to guarantee the reforms we walk are acceptable for purpose."

Minister for Housing Matthew Pennycook, alongside Housing Secretary and Deputy Prime Minister Angela Rayner (Image: Adam Toms/MyLondon)

Nonetheless, immoderate simpler aspects of the Leasehold and Freehold Reform Act volition beryllium enactment into effect, with the curate yet announcing a docket for erstwhile homeowners tin expect an extremity to immoderate of their fiscal woes.

Come January, the authorities is acceptable to scrap the "two twelvemonth rule" that presently prevents leaseholders from extending their lease oregon purchasing their freehold wrong the archetypal 24 months of ownership. Following this change, successful spring, definite leaseholders volition summation enactment to presume power of their freehold absorption and chopped unnecessary expenses, peculiarly those residing successful mixed-use developments.

Meanwhile, Labour has pledged to item its plans to abolish caller leasehold properties by the second fractional of adjacent year, though it has indicated that a nationalist consultation connected the projected measures indispensable beryllium conducted beforehand. You tin work the Housing Minister's full connection here.