Back in January, MPs were told that the rent-to-rent model 'absolutely' will be reformed Photo: Rasid Necati Aslim/Anadolu Agency
Plans to abolish the «feudal» lease system were toned down by Rishi Sunak during his second turnaround in two days.
Michael Gove, Minister for Upgrading, pledged to put the end of the «obsolete» property model in England and Wales.
But that promise will be dropped from legislation later this year because such a large-scale reform cannot be completed before the next election.
Instead, the government will focus on faster solutions, such as capping land rents and making it easier for tenants to own their own home. Brexiter is furious at abandoning a long-planned bonfire of EU laws.
Unfair system 'must go'
Mr Gove told MPs in January that he would 'absolutely' abolish the lease model and the government would 'move legislation into the near future'. time.»
He had previously described it as «an outdated feudal system that needs to be abandoned.»
Under lease terms, buyers only own their property for a certain period of time and are usually required to pay maintenance and land rent.
There have been complaints that this model is deeply unfair and hidden fees often result in to several thousand pounds a year.
The leveling secretary wants to replace it with a public system like that used in Australia and the US.
This alternative system ensures that buyers own their home indefinitely and have much greater influence over the management of their building and related costs. towards a system of public ownership, and that plans to set it up were not cancelled.
But Labor accused the prime minister of backtracking on yet another housing pledge, saying the pullback showed the government was in chaos.
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Lisa Nandy, shadow secretary for leveling up, said: “For months, this government has caved in to the benches on housing targets, locked itself in domestic battles over major improvements for tenants, and is now reneging on rent commitments.
Labour made plans to replace rented property with common property ahead of the 1997 elections, but Sir Tony Blair never passed them.
The National Association of Residential Landlords also criticized ministers for cutting them proposals.
The spokesperson said: «Rental reform is always on the government's agenda, but seems to very rarely reach the top of the pile.»
“A significant proportion of landlords own leased real estate, and the ongoing uncertainty about reforms is useless. amid low investor confidence.
«Given the challenges tenants are facing in the aftermath of the building safety crisis, many will feel disappointed by this policy change.»
There are «significant improvements»There are about 10 million tenant owners in England and Wales, and the public strongly supports the idea of completely abolishing the system.
A poll by campaign group Commonhold Now found that six out of ten people who voted Tory in the last election would support it change.
More than half of voters are in favor of moving to a public ownership system, with only 9% opposed, according to an Opinium poll.
Karolina Zoltanecka, co-founder of Commonhold Now, said that the government's easing of their plans was a betrayal.
A level up department spokesman said: «We are determined to better protect and enable tenants to fight unreasonable costs.
«We have already made significant improvements to the market — eliminated land rents for most new housing leases and announced plans to make it easier and cheaper for tenants to renew leases or buy ownership.< /p>
“In line with our manifesto commitment, we will introduce further reforms rent later in this parliament.»
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