The Communities Secretary Sajid Javid has announced a ban on leaseholds for almost all new build houses, among other measures designed to deliver a “fairer, more transparent system for homeowners”.
The new laws will also include setting ground rent charges on new long leases to zero.
Likewise, the Government will make it “cheaper and easier” for existing leaseholders to buy-out their freehold and there will be “better information available about redress for consumers who face the most onerous terms”.
According to the latest figures, there around 1.4 million leasehold houses in England, with sales increasing each year.
Mr Javid said: “It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms.
“It’s clear from the overwhelming response from the public that real action is needed to end these feudal practices. That’s why the measures this government is now putting in place will help create a system that actually works for consumers.”
What do the new measures include?
- legislating to prevent the sale of new build leasehold houses except where necessary such as shared ownership
- making certain that ground rents on new long leases – for both houses and flats – are set at zero
- working with the Law Commission to support existing leaseholders and make the process of purchasing a freehold or extending a lease much easier, faster and cheaper
- providing leaseholders with clear support on the various routes to redress available to them
- a wider internal review of the support and advice to leaseholders to make sure it is fit for purpose in this new legislative and regulatory environment
- making sure freeholders have equivalent rights to leaseholders to challenge unfair service charges