Housing minister Rachel MacLean has confirmed that a bill aimed at phasing out some leaseholds in England and Wales will be included in the King's Speech on November 7.
The proposed legislation is expected to prohibit leaseholds for new houses but not for new flats. The housing department estimates that there are nearly 5 million leasehold homes in England, with around 70% of them being flats.
The bill is anticipated to cap all existing ground rents at a very low rate and change the standard contract lease extension from 90 years to 990 years. The government also aims to make it easier and more affordable for homeowners to extend their lease or buy a freehold.
However, some housing campaigners argue that the ban on leaseholds should be extended to include flats.