A LEADING property association says the Government is right to drop plans to abolish the “feudal” system of leaseholds across England and Wales if they focus on ending the housing crisis.

Reports last week claimed proposals have been axed following a battle between Downing Street and Michael Gove.

Instead Mr Gove, the housing secretary, is expected to announce a range of measures to protect the 10 million Britons who own their homes in a leasehold, as part of a major speech following months of bruising party rows over housing.

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.

But Gove will stop short of abolishing leaseholds altogether, despite a pledge made in January to end it this year.

The National Association of Property Buyers said this was a “sensible step”.

Spokesman Jonathan Rolande said: “The reason maintenance has increased for so many is not freeholder profiteering but the price of regulations and the cost of living crisis.

“Building materials for repairs increased 23% in 2021 and 11% in 2022. Labour costs have rocketed too, so every communal clean, lift repair, window clean, gutter clearance and lawn cut have become more expensive. Safety regulations rightly imposed have added to costs.

“Anybody maintaining a freehold house will have noticed this too. Freeholders can help to arbitrate between neighbours who often want different things, some want to spend money to improve the block, while others do not. Losing this will lead to an impasse or argument.

“The system is far from fair and has been brought into focus because of the nationwide housing crisis. But make no mistake, there are aspects of the current way of doing things that would be missed if removed and getting rid of freeholders will neither solve the housing crisis nor reduce the day-to-day cost of owning a leasehold home.”

Millions of Britons own their homes through a lease, which leaves them having to pay extra costs to the building owner, including ground rents and service charges.

Flat owners are often left having thousands of pounds to repair common areas to their buildings, even if they disagree with the work being done.

Gove has promised for a long time to scrap the system.

“I don’t believe the leasehold system is fair in any way,” he said earlier this year. “It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it.”