Keir Starmer's Leasehold Reform Promise at Risk as Cabinet Divisions Intensify
Labour leader Keir Starmer has faced mounting pressure to stick to his party's campaign pledge to cap ground rents for leaseholders in England and Wales. As tensions between cabinet members, including Housing Secretary Steve Reed and Chancellor Rachel Reeves, come to a head, the fate of the promised reform hangs in the balance.
The policy was part of a draft leasehold bill that was due to be published last year, but its release has been repeatedly delayed. The bill's proposals were initially met with resistance from Treasury officials, who warned that capping ground rents could deter property investors and impact pension funds that own freehold properties.
Former Deputy Prime Minister Angela Rayner has weighed in on the issue, warning that the government's handling of leasehold reform is a "clear breach" of Labour's manifesto commitment. In an article for The Guardian, Rayner argues that the system works to the advantage of wealthy investors but causes devastating financial distress for ordinary homeowners.
Labour promised to bring an end to the feudal leasehold system in its 2019 manifesto, including banning the sale of new leasehold flats and tackling unregulated ground rent charges. Housing Minister Matthew Pennycook has been working on the draft bill since Labour entered government, with a proposed cap on ground rents at £250 a year for current leaseholders.
As cabinet divisions intensify, pressure is mounting on Starmer to publish the draft bill as soon as possible. Labour MPs have repeatedly raised concerns about the delays, estimating that there are an estimated 5m leasehold homes in England. The issue has sparked frustration among those affected, who are eager to see reform implemented.
With momentum at risk of being lost, it remains to be seen whether Starmer will stick to his party's promise on leasehold reform.
Labour leader Keir Starmer has faced mounting pressure to stick to his party's campaign pledge to cap ground rents for leaseholders in England and Wales. As tensions between cabinet members, including Housing Secretary Steve Reed and Chancellor Rachel Reeves, come to a head, the fate of the promised reform hangs in the balance.
The policy was part of a draft leasehold bill that was due to be published last year, but its release has been repeatedly delayed. The bill's proposals were initially met with resistance from Treasury officials, who warned that capping ground rents could deter property investors and impact pension funds that own freehold properties.
Former Deputy Prime Minister Angela Rayner has weighed in on the issue, warning that the government's handling of leasehold reform is a "clear breach" of Labour's manifesto commitment. In an article for The Guardian, Rayner argues that the system works to the advantage of wealthy investors but causes devastating financial distress for ordinary homeowners.
Labour promised to bring an end to the feudal leasehold system in its 2019 manifesto, including banning the sale of new leasehold flats and tackling unregulated ground rent charges. Housing Minister Matthew Pennycook has been working on the draft bill since Labour entered government, with a proposed cap on ground rents at £250 a year for current leaseholders.
As cabinet divisions intensify, pressure is mounting on Starmer to publish the draft bill as soon as possible. Labour MPs have repeatedly raised concerns about the delays, estimating that there are an estimated 5m leasehold homes in England. The issue has sparked frustration among those affected, who are eager to see reform implemented.
With momentum at risk of being lost, it remains to be seen whether Starmer will stick to his party's promise on leasehold reform.
I've seen so many people struggling with leasehold homes and it's just not right. It's like they're being taken advantage of by greedy landlords and property investors.
It's just common sense, right?
. It seems like Labour is trying to do the right thing by capping ground rents for leaseholders, but the cabinet divisions are really throwing a spanner in the works 
. I mean, who wants to be stuck with ridiculous ground rent charges that can bankrupt people? Not me, that's for sure 
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. Labour promised to do something about leasehold reform in 2019, so it's time to deliver on that promise 
. The fact that Angela Rayner is speaking out against the government's handling of it shows just how serious this issue is - it's not just about property investors, it's about people's lives and homes 
.
️. Come on, Keir, get the bill out there and make some progress! 
Labour promised 2 cap ground rents & now its lookin like theyre gonna have 2 backtrack 
Its like, whats the point of havin a manifesto if ur not gonna follow thru? 
The ppl affected by leasehold homes are literally sufferin 
& the gov is just messin around 
I mean, £250/year sounds good & all but its still not the same as the feudal system Starmer promised 2 abolish 
So yeah, im callin out Starmer on this one 
We need 2 see some real change ASAP 
. Labour promised to cap ground rents, but now it's looking like that promise might not be kept 
Can't we just have some clarity on this one? 
. I hope Starmer can find a way to bring it back on track 
. It's like they're trying to make their own opponents look good by being all infighting and whatnot 
. I mean, I get it, policy details can be tricky, but come on, £250 a year? That's still pretty steep for most people 
. And what about the fact that some of these freehold properties are owned by pension funds 
without messing over regular homeowners 
.
. Labour's got to stand by their promise and make this happen ASAP! 
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it sounds like ther r some pretty rich ppl makin money off other peoples' homes, which isnt cool at all 
. 5m homes affected is a lot, I'm starting to think it's just an excuse for them not to get it done ASAP 
. How about setting a deadline and getting it done? The public is counting on them! 
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. It feels like Labour is all over the place with this one. I mean, they promised to cap ground rents and now it's like Steve Reed and Rachel Reeves are having a huge argument about it 
.
or internal power struggles 
What's going on with these politicians?! Can't they make up their minds?! 
the whole thing is a mess 
. I think it's time for them to get on with it already 
, and maybe we can see some real change for those 5m leasehold homes 
i mean, £250 a year is a good start but 5m leasehold homes is a LOT of people 
. As a staunch advocate for progressive change, it's disheartening to see the system perpetuating inequality, where wealthy investors reap benefits while ordinary homeowners are saddled with crippling debts 
. With an estimated 5 million leasehold homes in England, it's imperative that Starmer holds firm on his promise to cap ground rents at £250 a year for current leaseholders 
. Will he find a way to publish the draft bill soon and fulfill Labour's promise, or will momentum be lost forever? Only time will tell