## Growing Pressure on Government to Deliver Leasehold Reform

The UK government is under mounting pressure to follow through on its commitment to reform leasehold arrangements, particularly the capping of ground rents. Leaseholders and campaign groups have expressed concern that the government may dilute promised reforms amid lobbying from wealthy investors. This issue is significant for millions of leaseholders who continue to face unregulated and escalating ground rent charges, despite reforms introduced for new homes in 2022.

## Labour’s Growing Backbench Rebellion

Labour’s 2024 manifesto included a pledge to tackle “unregulated and unaffordable” ground rents, which are annual fees paid by leaseholders to freeholders. While ground rents were abolished for most new-build homes last year, millions of existing leaseholders remain liable for fees that can rise periodically, complicating the sale or mortgage of their properties.

Labour committed to capping ground rents at £250 through the Leasehold and Commonhold Reform Bill. However, this long-awaited legislation did not materialise in 2025 as expected. This delay has sparked a growing rebellion among Labour backbenchers. Former housing secretary Angela Rayner has publicly urged the party to resist pressure from wealthy investors seeking to weaken the reforms. Writing in The Guardian, Ms Rayner highlighted government data showing that only 1% of UK pension fund assets are linked to ground rents, challenging claims that reform would harm pension investments.

## Leaseholder Campaigners Demand Action

The National Leasehold Campaign has criticised the government for appearing to waver on its leasehold reform promises. The group warned that professional lobbyists representing affluent freeholders are attempting to undermine the reforms, potentially betraying millions of leaseholders who voted for change.

The campaign group stated: “If the recent press articles are to be believed, this government, elected with a manifesto committed to meaningful leasehold reform, is about to be hoodwinked by the professional lobbyists acting on behalf of rich freeholders, and commit a terrible betrayal on millions of voting leaseholders.” They further emphasised the need for evidence-based decision-making, dismissing narratives that pension funds would be adversely affected as lacking factual support.

The group concluded: “Protecting consumers and ensuring fair, transparent residential property arrangements should remain the priority. Pension funds and wealthy investors have had years of exploiting leaseholders via this unethical income stream; they have ample opportunity to divest from these schemes. Enough really is enough. The 5.3 million leaseholders will not forgive this government if they are not on the side of leaseholders.”

## Government Maintains Commitment Amid Challenges

Despite the pressure, Treasury sources acknowledge challenges in setting a ground rent cap but insist that ministers are pursuing a “balanced approach.” A spokesperson for the Ministry of Housing, Communities and Local Government reaffirmed the government’s commitment to leasehold reform, stating: “Far too many leaseholders face unregulated and unaffordable ground rent charges. We will legislate to address this and will set out further details in due course so we can bring the feudal leasehold system to an end.”

## What This Means for Landlords and Agents

While the reforms primarily affect leaseholders, landlords and letting agents should be aware of the evolving legal landscape. Caps on ground rents could influence lease negotiations and valuations of leasehold properties. Agents may also see increased demand for advice from leaseholders seeking clarity on their rights and charges. Staying informed on the progress of the Leasehold and Commonhold Reform Bill will be essential for those managing leasehold portfolios.

Suggested internal link anchors
– leasehold reform
– ground rents
– Leasehold and Commonhold Reform Bill
– leaseholder campaign groups
– pension fund investments
– unregulated ground rent charges
– freeholders
– leasehold system
– housing policy
– landlord responsibilities
– property management
– leasehold properties

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/