Plans to abolish the “feudal” system of leaseholds across England and Wales have been dropped after a battle between Downing Street and Michael Gove.
The levelling up and housing secretary will still announce a range of measures to reform residential leaseholds, as part of a major speech next month.
But, after months of bruising party rows over housing, Gove will stop short of abolishing leaseholds altogether, despite a pledge made in January to end the tenure this year.
Instead the measures are expected to include a cap on ground rents, more powers for tenants to choose their own property management companies and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute.
Gove wanted to replace leaseholds for flats with a commonhold system, but Downing Street has said there will not be enough time.
