For years, leaseholders across England and Wales have been trapped in a broken system, one that too often turns the dream of home ownership into an expensive nightmare.
While the leasehold model is an outdated relic of feudal England, it remains the default tenure for millions, and its flaws are increasingly visible in the growing number of constituents contacting me about unfair service charges.
These charges are meant to cover shared maintenance, insurance and administration but are criticised for being opaque, inflated, and sometimes for works that are poor quality or never done at all.
In the worst cases, they can be life-changing: sudden bills of thousands of pounds for “major works” that come without meaningful consultation or notice, leaving households scrambling to cover costs they can’t afford.
The government’s Strengthening Leaseholder Protections over Charges and Services consultation, launched on 4 July is a long-overdue opportunity to address these abuses head-on.
It builds on the Leasehold and Freehold Reform Act 2024, which introduced important principles, such as transparency in service charges, the right to challenge unreasonable costs, and removing the presumption that leaseholders must pay their landlord’s legal costs even when they win a case but left much of the detail to secondary legislation.
The consultation seeks views on several key reforms:
- Standardised transparency – Landlords would be required to issue a clear, annual report and service charge demand form, detailing what leaseholders are paying for and why. Greater upfront information on administration charges and buildings insurance would also make it harder to hide unreasonable fees.
- More rights to information – Leaseholders would have an expanded legal right to request further details and evidence to back up charges, making it easier to hold landlords and managing agents accountable.
- Reforming Section 20 major works rules – Proposals include requiring landlords to prepare asset management plans, create reserve funds, and give better notice of large-scale works to prevent sudden financial shocks.
- Protecting fixed-charge payers – Currently, leaseholders with fixed charges (standard in retirement housing) have fewer rights to challenge costs. The government wants to hear your views on closing this gap.
- Regulating managing agents – Introducing mandatory qualifications would raise minimum standards in a sector where poor practice is still far too common.
For millions of homeowners, many of whom are first-time buyers who have stretched their finances to secure a place on the property ladder, these reforms will bring security, increased financial stability, and peace of mind.
Importantly, the consultation also signals the government’s intent to go further, with a Draft Leasehold and Commonhold Reform Bill promised later this year.
That Bill will look to make commonhold the fairer, default tenure, while tackling entrenched injustices like excessive ground rents and the threat of forfeiture.
The leasehold service charge scandal has festered for too long because, until now, the system has favoured those who impose the charges, not those who pay them. Implementing these reforms with care but also with urgency is essential.
Leaseholders, housing associations, managing agents, and landlords alike should engage with this process. For those affected, this is a chance to share your story and help shape a fairer, more transparent system for the future.
The consultation is open until 26 September 2025. You can respond online at consult.communities.gov.uk or by emailing protectingleaseholders@communities.gov.uk.
This is a monthly guest column provided by
Mohammad Yasin, Labour MP for Bedford & Kempston.
It is published unedited and does not
reflect the views of the Bedford Independent.
