Vaughan Gething called for “long-overdue” reform to the leasehold system, warning of injustice, iniquity and unscrupulous landlords fleecing households.
The former first minister said new leasehold properties are still being created in Wales following a significant increase over the past two decades.
Leading a short debate on January 8, he told the Senedd: “Long leases – typically those exceeding 21 years – frequently require a leaseholder to pay an annual ground rent, for which the landlord does not have to provide a clear service in return or, indeed, any service.
“It is, effectively, a means for an unscrupulous landlord to lever money out of leaseholders with precious little effective right to challenge or oppose the demands.”
Mr Gething acknowledged a Tory-introduced ban on ground rent in new leaseholds in Wales and England from 2022, but warned existing leaseholders remain subject to rising rents.
The Cardiff South and Penarth Senedd member raised concerns about the process for leaseholders to buy their freehold, citing the example of Hayes Point in his constituency.
“The unfairness of arms is again apparent,” he said.
“Determined leaseholders need to be able to give time, money and commitment, while the cards are still loaded in favour of the freeholder.”
Mr Gething, who has announced he intends to stand down at the next election in 2026, warned it is far too hard for leaseholders to take up the right to manage their estates.
He said: “A number of leaseholders, therefore, are trapped, and there is still a lack of transparency about the fees charged … access to that information and how, practically people can exercise the rights that, in theory, they already have.”
Mr Gething warned of the risks to leaseholders who can be landed with a bill for the freeholder’s legal costs if they unsuccessfully pursue the right to manage.
Jayne Bryant, who was appointed housing secretary by Mr Gething in July while he was first minister, agreed about the case for reform and the need for a Wales-and-England approach.
Ms Bryant said a leasehold reform bill, which is expected in the second half of 2025, will implement much-needed changes to ensure commonhold becomes a feasible alternative.