Given that many properties are directly or indirectly owned by pension funds, getting leasehold reform wrong risks destabilising the property markets, transferring value to foreign investors and undermining the UK’s attractiveness, says Natalie Chambers

The government’s rhetoric on harnessing institutional capital as a driver for economic growth is welcome. In the coming months, the government will face its first true test of this vision from an unexpected policy area: leasehold reform.

Currently, many residential freeholds are either directly or indirectly funded by major financial institutions, including regulated UK pension funds. These institutions promote strict stewardship principles which ensure not only the responsible allocation, management and oversight of capital to create long-term value for their investors but also benefits for the leaseholders of the properties in which they invest.

Since assuming office, Labour’s more measured approach has been a refreshing change from the previous government. The housing minister, Matthew Pennycook, has acknowledged the complexities of leasehold reform while announcing a whole-of-parliament........

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