A government bill on leasehold reform known as the Ground Rent bill, which bans ground rents for new property leases, concluded its journey through parliament yesterday.

The bill, the first of a two-part reform, restricts ground rent owed on new leases. It has been criticised by real estate specialists who say excluding existing leases from the ban does little for holders currently incurring thousands of pounds of ground rent per year.

According to Homehold chief executive Linz Darlington, if the first bill is not followed swiftly by further reform, the situation for leaseholders could worsen.

“By banning ground rents on new leases, leaseholders of flats with ground rents will essentially find that their properties become second-class assets – making them harder to sell and mortgage,” she says.

“Yesterday was the opening of a window of opportunity where freeholders will be able to incentivise leaseholders to accept terms on lease extensions and new leases which will soon be illegal,” she adds.

“Despite protestations from both Liberal Democrat and Labour Lords, an amendment to introduce a safeguard to stop that happening was withdrawn.”

Darlington adds that the second part of the reform should be introduced without delay, though during deliberations, executor of the bill, Lord Greenhalgh, could not confirm whether the bill would appear in the next Queen’s speech.

Greenhalgh instead said that it was likely leasehold reform would be front and centre of secretary of state for housing, Michael Gove’s, wider plan for reform on housing.

According to Greenhalgh, the bill will commence within six months of it receiving royal assent.