What's happened
Residents in England and Wales are facing soaring service charges from property management companies like FirstPort, prompting calls for reform. The government has announced delays in leasehold reforms due to flaws in previous legislation, leaving many leaseholders in precarious financial situations as they struggle with escalating costs and inadequate services.
Why it matters
What the papers say
According to BBC News, residents have reported service charges from FirstPort that have surged, with some experiencing increases of over 400%. Liam Mckinnon shared his struggles, stating, "It makes me feel helpless... there’s no accountability for them." The Independent highlighted that the previous legislation was flawed, potentially excluding many shared ownership leaseholders from benefits. Housing Minister Matthew Pennycook emphasized the need for careful reform, stating, "We must correct an omission that would deny tens of thousands of shared ownership leaseholders the right to extend their lease." The Guardian noted that the government is committed to ending the leasehold system but faces challenges in implementing reforms due to legislative flaws. This sentiment was echoed by campaigners who worry that the delays may leave many leaseholders trapped in exploitative arrangements.
How we got here
The leasehold system in England and Wales has been criticized for allowing freeholders to impose high service charges on leaseholders, often without adequate service. Recent legislation aimed at reforming this system has encountered significant flaws, delaying necessary changes.
Common question
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What’s Delaying the UK Leasehold Reform and What’s Next?
The UK leasehold reform has faced significant delays, leaving many leaseholders in uncertainty. With the government's commitment to address the flaws in previous legislation, many are left wondering what this means for their rights and financial stability. Here are some common questions surrounding the current situation and what leaseholders can expect moving forward.
More on these topics
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England and Wales is one of the three legal jurisdictions of the United Kingdom. It covers the constituent countries England and Wales and was formed by the Laws in Wales Acts 1535 and 1542. The substantive law of the jurisdiction is English law.
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Michael Andrew Gove is a British Conservative politician who has been Chancellor of the Duchy of Lancaster since July 2019 and Minister for the Cabinet Office since February 2020. He has been the Member of Parliament for Surrey Heath since 2005.
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BBC News is an operational business division of the British Broadcasting Corporation responsible for the gathering and broadcasting of news and current affairs in the UK and around the world.