The End of Leasehold Flats in England and Wales is Near
Big changes are coming to the way homes are owned in England and Wales. The government has announced plans to ban the sale of new leasehold flats, marking a major shift towards a fairer system of home ownership. This is huge news for millions of people currently living under the leasehold system, which has long been criticized for unfair costs and a lack of control over service charges.
So, what does this mean? Right now, if you buy a leasehold flat, you don’t actually own the building—just the right to live there for a certain period. The real owner, the freeholder, can charge fees for maintenance, insurance, and other costs, often without much transparency. Many leaseholders have been hit with massive, unexpected service charge increases, leaving them financially stuck.
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Take Kasia Tarker, for example. She bought a one-bedroom flat in West London in 2022, paying around £65 a month in service charges. Fast forward to today, and that number has skyrocketed to over £200 a month. She’s now struggling to keep up with the costs and fears she may have to sell her home—or worse, face homelessness. And she’s not alone. Stories like this are everywhere, with some people paying thousands each year for services they don’t even see being carried out.
The government wants to replace leasehold with something called "commonhold." Under this system, homeowners would actually own their flats and share responsibility for the building’s maintenance, giving them more control over costs and management decisions. Unlike leasehold, there would be no ground rent, no service charge surprises, and no risk of losing your home because of unpaid fees.
While this ban on new leasehold flats is a big step forward, many current leaseholders feel left behind. The proposed changes mainly focus on future developments, meaning millions of people stuck in existing leasehold agreements are still facing unfair costs. Campaigners are calling for clear plans on how existing leasehold properties can be converted to commonhold, so that no one is left trapped in the old system.
Housing Minister Matthew Pennycook has reassured homeowners that reforms will continue to help those already affected. But there’s still a long road ahead, and leaseholders are watching closely to see whether these promises will lead to real change.
If the government follows through, this could mark the end of a housing system that has existed for centuries—one that many believe has unfairly treated homeowners for far too long.
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