PLANS to ban new leasehold flats may hinder the government’s 1.5 million new homes target, the Communist Party’s housing expert Lorraine Douglas has warned.

Housing minister Matthew Pennycook hailed the beginning of the end of a “feudal” system as the government published its Commonhold white paper today.

He said: “By taking decisive steps to reinvigorate commonhold and make it the default tenure, we will ensure that it is homeowners, not third-party landlords, who will own the buildings they live in and have a greater say in how their home is managed and the bills they pay.”

The white paper says that the government will consult with industry on “the need for any limited exemptions” on the proposed ban, adding: “We will also seek views on what transitional arrangements may be required to mitigate any disruption to new housing supply as we deliver on our ambition for 1.5 million new homes.”

Ms Douglas, a member of the Communist Party’s political committee, told the Morning Star that while the plans could end the financial exploitation of leaseholders by property owners and managers, they suggest that large developers would be prevented from “offloading” freeholds for new-build estates to marketing companies.

As the private sector largely controls the housing supply, “it will have an impact on delivery,” she said, highlighting the number of central London properties owned by foreign oligarchs, despite local need.

She urged ministers to “resolve the injustice of leaseholders being forced to foot the bill for poor quality building, including the removal of lethal cladding from buildings below 18 metres, by holding the developers financially liable.”

A draft Leasehold and Commonhold Reform Bill is to be published later this year, applying to England and Wales.