Plans to abolish the “feudal” system of leaseholds across England and Wales have been dropped after a battle between Downing Street and Michael Gove.
Gove, the housing secretary, will next month announce a range of measures to protect the 10 million Britons who own their homes in a leasehold, as part of a major speech following months of bruising party rows over housing.
The measures are expected to include a cap on ground rents, more powers for tenants to choose their own property management companies and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute.
But Gove will stop short of abolishing leaseholds altogether, despite a pledge made in January to end it this year.
A spokesperson for the Department for Levelling Up, Housing and Communities, said: “We are determined to better protect and empower leaseholders to challenge unreasonable costs.
“We have already made significant improvements to the market – ending ground rents for most new residential leases and announcing plans to make it easier and cheaper for leaseholders to extend their lease or buy their freehold.
“In line with our manifesto commitment, we will bring forward further leasehold reforms later in this parliament.”
Millions of Britons own their homes through a lease, which leaves them having to pay extra costs to the building owner, including ground rents and service charges.
Flat owners are often left having to pay tens of thousands of pounds to repair common areas to their buildings, even if they disagree with the work being done.
Gove has promised for a long time to scrap the system, telling the Sunday Times earlier in the year he wanted to do so this year.
“I don’t believe leasehold is fair in any way,” he said.
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