Blow for renters and ripped-off leaseholders as promised law changes to help them are stifled by arguments

PROMISED law changes to help renters and ripped-off leaseholders are stuck because of an argument between Michael Gove and Downing Street. 

The Sun understands that the Housing Secretary is prepared to see the Renters Reform Bill pass through the Commons with the help of Labour votes as a last resort - but Rishi Sunak is blocking the move.

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Whitehall sources say the PM doesn't want to face the embarrassment of Tory MPs voting against the government.

A government source said: "It’s a complex area, and we’re working through with the Department for Levelling Up, Housing and Communities.

"Labour are in a right mess over housing, stopped houses ready to go being built and Sadiq Khan wants failed rent controls which would make things so much worse for renters.

"Labour hasn’t got a scooby."

The Renters Reform Bill would fulfil a 2019 Conservative manifesto promise to end hated no-fault evictions.

But the long-awaited new law has been continuously delayed because of threats from Tory backbenchers, including landlords, to vote it down.

Mr Gove and Levelling Up Minister Jacob Young are still trying to reach a compromise with backbench rebels, who are being being led by Totnes MP Anthony Magnall.

Mr Magnall isn't a landlord and insists he wants the Bill to pass - but with major amendments.

Intensive conversations are making progress and there is some hope the Bill can be brought back to the Commons after Easter.

Tom Darling, Campaigner Manager at the Renters' Reform Coalition, said: “What an indictment of our political process.

"Get 40 backbench landlord MPs together, add a weak Prime Minister, and you have a recipe for wealthy interests being able to essentially veto repeatedly promised, widely popular, desperately-needed legislation.

“The government must progress this legislation immediately - even if that means standing up to their backbenchers. England’s 12 million private renters will hold them accountable for anything less.”

Meanwhile, Mr Gove is also understood to be caught in a tug-of-war with the Treasury over ending leasehold rip-offs.

The Housing Secretary wants to change the law to rapidly reduce all ground rents to peppercorn rates.

But The Treasury is said to be terrified of frightening pension funds that have invested in the "unfair" and "feudal" income stream.

Insiders say a compromise will likely be found that will see leasehold reforms implemented slowly over an extended period of time.

Jeremy Hunt has recused himself from conversations around the Leasehold and Freehold Reform Bill due to being a landlord.

Whitehall sources say that ever since Liz Truss' mini-budget spooked pension funds The Treasury has been extra cautious about major reforms that impact them.

But Mr Gove is clear he wants to see leasehold reform happen as soon as possible.

A DLUHC spokesperson said: “Our landmark Renters Reform Bill is progressing through Parliament. The Bill will deliver a fairer private rented sector for both responsible tenants and good faith landlords.

“The Leasehold and Freehold Reform Bill will make will improve homeownership for millions across England and Wales by improving transparency of service charges, delivering 990-year lease extensions, abolishing marriage value, and banning new leasehold houses.

“The Secretary of State has been clear that we are always looking for ways to improve the legislation.”