The leasehold reform bill will be debated in the House of Lords today (24 May) in a bid to rush it into law before the general election.  

Housing bodies and campaigners feared both the leasehold and the renters reform bills would fall ahead of Parliament dissolving on 30 May to prepare for the 4 July national poll.  

But the upper house announced late on Thursday it would consider the leasehold bill during the final hours of the “wash-up” period when legislation can be passed quickly.  

The bill will go through its report and third reading in the Lords on Friday, time has also been set aside in the House of Commons to consider any amendments made by the upper house.

So far, similar arrangements have not been made for rent reforms.  

The leasehold bill, introduced last November by housing secretary Michael Gove, plans to boost the rights of people who live in the 4.77 million leasehold homes in England, which accounts for 19% of the nation’s housing stock.    

However, campaigners are unsure how much of the bill will be amended by lawmakers, around the contentious issue of the charges leaseholders face.  

Velitor senior law associate Liam Spender said on X it “looks as if it [the bill] will pass, but unsure whether in its current form or with amendments on things like ground rents”.  

Leaseholders own the right to occupy their homes, but the building or land is owned by a freeholder landlord.       

Some are trapped by onerous ground rents that are either double, or increasing in line with inflation, costing them thousands a year.    

Other leaseholders have to pay service charges, but have little say over maintenance work carried out in and around their homes.   

The average service charge leaseholders pay managing agents is £3,634 a year, a 41% over the last five years. The average ground rent leaseholders pay landlords in England and Wales is £298 annually, according to official data.    

Gove has called the leasehold system a “feudal system that needs to go”.      

Last month, reports suggested that annual charges levied on leaseholders will be capped at £250 a year rather than being cut to zero, or “peppercorn” rate, after Gove was forced to water down his legislation by the Treasury.    

Treasury analysis is reported to show the government could be open to compensation claims as high as £37bn from insurance funds that have invested heavily in ground-rent portfolios.  

Propertymark head of policy and campaigns Timothy Douglas says: “Leasehold reform is much needed, so it is welcome that the legislation looks set to pass.   

“We know from the data that we have discovered as part of our campaigning on the issue that many leaseholders regret buying a leasehold property plus complex leases and escalating ground rents can make leasehold property more difficult to sell.   

“The proposals are a step in the right direction and will bring in more protections for consumers.   

Douglas adds: “However, to strengthen the measures further we have long said that those buying, selling and renting out leasehold properties must be suitably qualified and regulated, ground rents must be reduced to a peppercorn and issues around event fees must be tackled.   

“It is imperative that the current government don’t miss the opportunity or consumers and the sector will be left waiting once again for further reforms, with what will feel like unfinished business to many.”