The King’s Speech has once again put housing right back in the spotlight and, for the property world, one issue stood out more than any other: leasehold.
There was also renewed focus on unsafe cladding, wider housing reform and social housing, but the headline most people in the property industry will take away from today is that leasehold is once again under serious pressure.
At Partridge Homes, our view is simple. This is one of those moments where the headlines are big, the language is bold and the direction of travel is obvious. The real question now is whether any of it will lead to meaningful change.
“The property world has heard big promises before. The issue is never just what gets announced. The issue is what actually gets delivered.”
For years, leasehold has been one of the most criticised parts of the housing market. Too many flat owners have found themselves tied into a system they did not fully understand when they bought, with ongoing ground rents, service charges, management frustrations and limited control over the building they live in.
That is why today’s focus matters.
“In my opinion, leasehold has needed a serious overhaul for years. Too many people have ended up in a system that can feel expensive, one sided and far more complicated than it should be.”
For many people outside the property industry, leasehold can sound confusing from the outset. A lot of buyers assume they are simply buying a home, only to later realise they are buying the right to live in that home for a set period of time, under rules and obligations they may not have fully appreciated.
That is one of the reasons this debate has become so important.
What leasehold really means
In simple terms, if you own a property on a leasehold basis, you do not usually own the land it sits on outright. Instead, you own the right to occupy the property for the length of the lease. The freeholder normally owns the building or land itself, and the leaseholder may have to pay charges and comply with rules linked to the lease.
That system has been around for a long time, especially with flats, but it has become more controversial in recent years.
“A lot of buyers have felt like they own their home, but not fully control it. That is where much of the frustration has come from.”
Why today’s speech matters
The King’s Speech has signalled that the government still wants to reform the system and move away from the traditional leasehold model. For flat owners, buyers, landlords and investors, that is a major point of interest.
It suggests that housing reform is still high on the political agenda and that the old leasehold structure is facing increasing pressure.
For many people, that will sound positive. A fairer, clearer and more transparent ownership structure is something most sensible people would support. But in property, good intentions are not enough on their own.
“My view is that reform sounds positive in principle, but the small print will be everything. Property law is never just about the headline.”
That is especially true where flats are concerned. There are lenders, developers, managing agents, freeholders, leaseholders and investors all operating in the same market. Changing the legal structure of ownership is not something that can be done casually or without consequences.
Freehold, commonhold and why the public gets confused
One of the reasons people become confused by this whole topic is that there are several different ways property can be owned, and most people only come across the detail when they are already deep into a sale or purchase.
Freehold usually means you own both the property and the land it stands on outright. This is commonly associated with houses.
Leasehold usually means you own the property for a fixed period of time under a lease, but not the land itself. This is more common with flats, although some houses have also been sold leasehold.
Commonhold is often talked about as the alternative model for flats. Broadly speaking, it is designed to give flat owners more direct control over their homes and shared areas, rather than relying on the traditional leasehold and freeholder structure.
“In plain English, people want ownership to be clearer, fairer and easier to understand. That is why leasehold reform gets so much attention.”
The cladding issue still matters massively
Alongside leasehold, there was renewed focus today on unsafe cladding. This remains one of the most serious issues in the flat market and one of the most distressing for affected owners.
For some, this has gone on for years. People have been left unable to sell, unable to remortgage easily and stuck in prolonged uncertainty while waiting for works, decisions and accountability.
“For those affected by cladding, this is not just another housing policy headline. It has meant real stress, real worry and years of not knowing where they stand.”
Any renewed pressure to deal with cladding will be welcomed, but again the public and the industry will judge it on results, not on words.
What this means for buyers and sellers
For buyers, particularly those looking at flats, this latest round of housing reform talk may be encouraging. Anything that leads to greater clarity and confidence in ownership is likely to be seen as a good thing.
For sellers of leasehold properties, especially flats, there may also be hope that clearer reform could eventually make their homes easier to understand, easier to mortgage and easier to sell.
But it is also fair to say that whenever the government starts talking about major structural reform, it can create uncertainty in the short term while everyone waits for the actual detail.
“That is often the reality in property. The market likes certainty. Big reform can be positive, but during the transition there is always nervousness.”
What this means for landlords and investors
Landlords and investors will be watching particularly closely. Anyone holding leasehold apartments, blocks or flats will want to know how future changes may affect their rights, responsibilities, costs and long term plans.
The broad direction may be positive, but practical questions will matter. How will ownership be structured in future? What will happen to existing leasehold arrangements? How will management responsibilities work? What changes will affect values, lending and confidence?
“This is why people in property always look past the headlines. It is the detail underneath that changes the game.”
Our view at Partridge Homes
At Partridge Homes, we welcome reform that genuinely makes the property market fairer, clearer and more workable for normal people.
If leasehold is going to be challenged properly, that is something many homeowners will support. If flat ownership can become more transparent and less frustrating, that is a good thing. If people affected by unsafe cladding finally get decisive action, that is long overdue.
But we also think the public is right to be cautious.
“Our stance is simple. Do not judge this on the speech. Judge it on what actually happens next.”
Because that is what matters most now. Not the applause line. Not the political headline. Not the press release. The real issue is whether this turns into something that improves the property market in practice for buyers, sellers, landlords, leaseholders and flat owners across the country.
For now, one thing is clear. Leasehold is once again firmly in the firing line, housing is back near the top of the political agenda, and the property world will be watching very closely to see what comes next.
FAQ
What is leasehold?
Leasehold is a form of property ownership where you own the right to live in a property for a fixed number of years under a lease, but you do not usually own the land it stands on.
What is freehold?
Freehold means you own the property and the land it stands on outright, with no time limit attached to that ownership.
What is commonhold?
Commonhold is an alternative way of owning flats where owners own their individual property and share control of the common parts of the building, instead of relying on a traditional leasehold and freeholder structure.
What is the difference between leasehold and freehold?
The main difference is ownership. Freehold usually means full ownership of the property and land. Leasehold usually means ownership of the property for a fixed period of time, but not the land.
Is leasehold bad?
Not always, but it has become controversial because many leaseholders have faced high charges, confusing lease terms, limited control and expensive problems that they did not expect.
Why do people complain about leasehold?
People often complain about leasehold because of ground rents, service charges, lease extension costs, management issues and the feeling that they do not have full control over the building they live in.
Is leasehold ending?
Not yet. The latest housing announcements suggest reform is coming and the pressure is growing, but that does not mean the system disappears overnight.
What does the King’s Speech mean for leaseholders?
It suggests the government still wants to reform leasehold and put more pressure on the current system, which could eventually mean greater protection and a different ownership model for flats in future.
What does the King’s Speech mean for freeholders?
Freeholders will be watching closely because any major reform to leasehold or flat ownership could affect their rights, responsibilities and long term role in the market.
What does the King’s Speech mean for flat owners?
Flat owners will be paying close attention because any changes to leasehold, commonhold or cladding rules could affect ownership, value, saleability and confidence.
What is ground rent?
Ground rent is a charge some leaseholders pay to the freeholder under the terms of their lease.
What is a service charge?
A service charge is money paid by leaseholders towards the maintenance, management and upkeep of communal parts of a building or development.
Can a leasehold property be hard to sell?
It can be. Some leasehold properties are more difficult to sell if the lease terms are poor, the remaining lease length is short, the charges are high or buyers and lenders are cautious.
Is freehold better than leasehold?
Many people prefer freehold because it is simpler and gives greater control, but it depends on the property. Flats have traditionally been sold leasehold, which is why reform has become such a major issue.
Why are flats usually leasehold?
Flats have often been sold leasehold because it creates a structure for managing shared buildings, communal areas and responsibilities across multiple owners.
What is unsafe cladding?
Unsafe cladding refers to external wall materials on some buildings that may present a fire safety risk and require investigation, remediation or replacement.
Why has cladding been such a big issue?
Because many owners of affected flats have faced years of uncertainty, stress and difficulty selling or remortgaging their homes.
Will housing reform affect landlords?
Potentially yes. Landlords with leasehold flats or interests in blocks will want to monitor any changes carefully as reform could affect management, compliance and long term investment planning.
Will housing reform affect buyers?
Yes, especially buyers looking at flats. Any change to ownership structures, legal obligations or market confidence can affect how buyers view certain properties.
Has the law changed already?
No. The speech sets out political direction and proposed reform, but the legal process still has to follow.
Why does this matter to the wider property market?
Because when the government talks about changing how homes are owned, managed and made safe, it affects confidence across buying, selling, lending, investing and letting.
At Partridge Homes, we always keep a close eye on the issues that genuinely affect homeowners, landlords, buyers, sellers and investors in the real world. The King’s Speech has put leasehold, cladding and housing reform firmly back into the national conversation, but as ever in property, the real impact will not come from the headline. It will come from what happens next.
