Sadiq Khan Accused of 'Hypocrisy' Over Leasehold Development Position
London Mayor Sadiq Khan is facing mounting criticism and accusations of political hypocrisy after refusing to commit to converting all City Hall-backed housing developments from leasehold to commonhold tenure. The controversy emerged during a heated Mayor's Question Time session where Conservative London Assembly Member Andrew Boff directly challenged the Mayor's stance on properties already in the development pipeline.
The Leasehold Reform Campaigner's Controversial Position
Sir Sadiq Khan has positioned himself as a vocal campaigner for leasehold reform throughout his tenure, frequently urging his Labour colleagues in government to accelerate changes to what he has described as an outdated system. The Mayor has implemented several measures including banning ground rents and requiring 990-year leases for properties receiving Greater London Authority funding. However, his refusal to intervene in developments already approved has sparked significant backlash from political opponents and housing activists.
"You could convert all those developments to a share of freehold, giving those residents control over their destiny, but you are still backing leasehold with mayoral money," Mr Boff asserted during the exchange. The Conservative Assembly Member specifically called for suspending all proposed developments backed by Mayoral funding that utilize leasehold as their primary tenure structure.
Government Funding Conditions vs. Political Will
The Mayor defended his position by emphasizing the constraints imposed by government funding agreements. "It's not mayoral money - it's government money that comes with conditions attached," Sir Sadiq explained. "What we're doing is abiding by the conditions from the government working with councils, housing associations and developers to get the housing built in London that we desperately need."
Under the current Affordable Homes Programme agreement spanning 2021-2026, City Hall must follow guidelines established by the Ministry for Housing, Communities and Local Government. This arrangement includes funding for shared ownership homes, which are inherently leasehold by their current legal structure. The Mayor expressed reluctance to "break" existing agreements that facilitate the construction of affordable housing across the capital.
Political Opposition Intensifies Criticism
Green Party Leader and Assembly Member Zack Polanski launched a particularly scathing attack on the Mayor's position. "Sadiq Khan has refused to commit to no more new build leasehold buildings in London," Polanski stated. "Literally moments after banging on about how bad leasehold is and that it's a feudal system. The Labour hypocrisy knows no ends. What do they stand for other than to protect wealth and power?"
Housing campaigner Harry Scoffin, founder of Free Leaseholders, provided additional context about the practical implications for London residents. "Growing numbers of Londoners are being abused in the rigged leasehold system, surrendering more and more of their hard-earned money to fat-cat freeholders while many slide into negative equity," Scoffin told reporters. "Flats accounted for around 60 percent of London home sales last year, according to Hamptons, but made up around 90 percent of all losses."
The Commonhold Solution and Future Prospects
The Draft Commonhold and Leasehold Reform Bill, published in January 2026, theoretically establishes commonhold as the default tenure for newly constructed properties. Commonhold represents a type of freehold arrangement typically applied to flats that grants homeowners independence rather than requiring them to lease from the building's overall owner. This legislative development could potentially transform future housing development in London.
In December, the Mayor indicated to Assembly Members that while changes couldn't be implemented retroactively for existing funding agreements, future developments might benefit from legislative reforms. "We could not change the rules in relation to the previous funding from MHCLG but, going forward, we are trying to secure particularly the change in the law in terms of legislation to make sure that in the future they are all commonhold," Sir Sadiq stated.
Statistical Context and Market Realities
London's housing market presents unique challenges regarding leasehold properties, with over one-third of the capital's homes operating under this tenure system. This proportion more than doubles the rate found in other regions of England, primarily due to London's higher concentration of flat developments. The prevalence of leasehold arrangements has created significant financial pressures for many residents, particularly as service charges and ground rents continue to escalate.
Mr Scoffin emphasized the broader implications: "Instead of being a caring and strong Mayor challenging an unpopular government that has fallen to vested interests, Sadiq Khan is backing tokenistic reforms that will keep the ground rent gravy train running until 2068 and abandon existing leaseholders to a two-tier regime." The housing campaigner questioned whether the Mayor was demonstrating the leadership London residents expected on this critical issue.
Political Ramifications and Upcoming Elections
The controversy arrives at a politically sensitive moment with May elections approaching, providing opponents with ammunition to challenge the Mayor's record on housing reform. Critics suggest the issue reflects broader concerns about political will versus practical constraints in addressing London's housing crisis. The Green Party appears particularly positioned to capitalize on dissatisfaction among leaseholders and housing advocates who feel betrayed by what they perceive as insufficient action from the Labour Mayor.
As the debate continues, London's leaseholders await concrete solutions to what many describe as a fundamentally unfair system that disproportionately affects flat owners in the capital. The tension between immediate housing needs and long-term structural reform remains at the heart of this ongoing political confrontation.
