When leasehold flat owners are being treated as second-class citizens | Letters

Leasehold flat owners across England say they are treated as “second-class citizens,” facing unchecked development on their buildings and financial risks that proposed government reforms fail to address, according to residents and campaigners [1]. In correspondence with The Guardian, leaseholders described a system where freeholders can impose major construction projects with little recourse. At one block, developers purchased the freehold and announced plans to build new flats on top of existing homes. Residents said appeals were powerless to stop the work [1]. Since May 2025, occupants have endured restricted daylight from scaffolding erected six months before construction began, along with trespass, water ingress from attempted copper theft, and evening and bank holiday noise [1]. “You are basically a second-class citizen in the eyes of the freeholder, council and government,” said leaseholder Jessica Murray [1]. The local council has limited authority to address complaints, and the local MP’s office forwarded replies from freeholders that did not engage with the issues raised [1]. The dispute unfolds as the Labour government, elected in a landslide in 2024, faces pressure to deliver on long-promised housing reforms [3]. The year 2022 saw a cost of living crisis marked by high inflation and rising energy bills, compounding financial strain on households [4]. Beyond physical disruption, leaseholders warn of a financial loophole in the draft commonhold and leasehold reform bill. While the legislation introduces caps on ground rents, it does not protect service charges and reserve funds held by managing agents [1]. One director of a right-to-manage company said that if a managing agent’s client accounts are frozen or mismanaged, residents are left without access to their own capital for essentials such as building insurance. “Statutory trusts look great on paper, but the real-world financial protections backing them are nonexistent,” the director stated. “Hundreds of thousands of pounds of collective savings from a block can vanish or become trapped overnight, with absolutely no regulatory safety net” [1]. The correspondent called on the government to “stop foot-dragging” and mandate a transition to true commonhold, the only arrangement that would give flat owners genuine control over their homes and funds [1]. Vicky Davies, writing from Bristol, argued that solicitors’ roles in the leasehold scandal deserve greater scrutiny. “If my solicitor had let me sign a contract containing a doubling clause without pointing it out to me, I would be taking them to court for professional negligence,” Davies said, noting that many solicitors were recommended by developers, creating a conflict of interest [1].