As part of this reform, the government intends to ban the sale of new leasehold flats, transitioning to a commonhold system that empowers homeowners with greater control over their properties.

The commonhold model fundamentally differs from leasehold by allowing homeowners to participate in budget decisions, eliminating ground rent, and preventing the forfeiture of homes.

The government of England and Wales has announced plans to abolish the centuries-old leasehold system by the end of the current parliament, impacting around 5 million homes.

Previous reform efforts by former Housing Secretary Michael Gove faced challenges due to government intervention, which diluted proposed changes.

A draft Leasehold and Commonhold Reform Bill is expected to be published later this year, detailing the operational framework of the new commonhold system.

Pennycook emphasized the ambition of these reforms, suggesting that the end of the leasehold system could have a significant generational impact.

Housing Minister Matthew Pennycook aims for commonhold to become the default property ownership arrangement, significantly reducing the prevalence of leasehold properties.

New proposals will also include measures to improve the management of commonhold properties, instilling confidence in lenders and enabling flexible arrangements for shared amenities.

Pennycook has described the current leasehold system as 'feudal,' citing ongoing complaints from leaseholders about high service charges and deteriorating building conditions.

Concerns have been raised regarding the conduct of freeholders and building managers, particularly about unjustified fees and inadequate maintenance.

The National Leasehold Campaign has welcomed the government's announcement but stresses the need for mechanisms to assist existing leaseholders still trapped in the current system.

The proposed reforms aim to eliminate extra costs associated with leasehold ownership, such as ground rent, making homeownership more affordable.