The leasehold bill was introduced to Parliament two weeks ago, with the aim of improving how leasehold and freehold works.
Measures in the bill include making it easier for people to extend their lease or buy their freehold, extending the standard lease extension term to 990 years for houses and flats, and introducing greater transparency over service charges.
The bill will now go into committee stage, where amendments may be added to the legislation.
During the debate in Parliament, concerns were raised around the fact that the bill does not include a ban on leasehold houses, a measure that had previously been promised by ministers.
Linz Darlington, founder of leasehold extension specialists, Homehold warned that currently the bill falls short of its own objectives.
He noted that the legislation is “deafeningly silent” on the prescribed rates which will dictate the cost of extending leaseholds and buying freeholds.
“Whether or not the bill will make lease extensions cheaper – or potentially hugely more expensive – will be decided outside of the scrutiny of the parliamentary process.”
He added: “What we need in this bill is not legislation missing key parts, but a workable piece of legislation that does what it says it is going to do.”
Mark Chick, director of the Association of Leasehold Enfranchisement Practitioners (ALEP), described the bill as a “complete gamechanger for landlord and tenant law”, but questioned whether the bill in its current form can effectively make the leasehold process cheaper and easier.
At the time of the first reading, Michael Gove, Secretary of State for Levelling Up, said: “People work hard to own a home. But for far too long too many have been denied the full benefits of ownership through the unfair and outdated leasehold system.
“That’s why liberating leaseholders forms a vital part of the government’s long-term plan for housing.
“So today marks a landmark moment for millions of leaseholders across the country, as we unveil laws to deliver significant new rights and protections, slash unfair costs and crack down on exploitation.”
Previous research has cautioned that the reform could cost taxpayers up to £31bn.
