The government’s announcement regarding leaseholds took many by surprise and has caused some confusion about the intended ambit of the new rules. Although many important details remain unclear, the direction of travel is far easier to discern, and indeed has been for some time now. In 2017, the then communities secretary, Sajid Javid, announced measures to root out unfair and abusive practices within the leasehold system, including banning leaseholds for almost all new-build houses and setting ground rents for new leases at zero. Three years later, the Law Commission produced three substantial reports on leasehold enfranchisement, commonhold and the right to manage. The government’s announcement on 7 January grew out of those earlier proposals. One of the less contentious proposals is for leaseholders of flats and houses to be given the right to extend the term of their leases by 990 years with a zero ground rent. Abolishing ground rent on a lease extension represents no change for leaseholders of flats, but the very long term length sends out a clear message that the government wants leasehold to be a right enjoyed by tenants and their successors effectively in perpetuity. Proposed reforms that would overhaul property law could bring windfall £50,000 house price jumps for leaseholders, according to Capitol Economics.

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