Ending the exploitation of prospective homeowners

Plans revealed by the Secretary of State for Communities and Local Government, Sajid Javid MP, will aim to curb the practice of selling new-build houses under leasehold.

When a property is bought under leasehold, the buyer only has the right to occupy and use the property. Since many homeowners do not own the land which their house sits on, they can face fees and costs from the landowner such as ground rents, which under the new proposals could be massively restricted on new-build homes. There are currently 1.2million leasehold houses in England alone, and with the number rapidly rising the Government is determined to take action to prevent future homeowners from being ripped off.

An eight-week consultation will take place where the concept of selling under leasehold will be reviewed, and will include proposals to set ground rents to zero levels, close legal loopholes which leave leaseholders vulnerable to possession orders, and change the rules regarding the Help to Buy scheme so it does not support new-build homes being sold under leasehold.

You can see the Government’s proposals in the consultation document online, where you have until 19th September to respond either online or via email. Just go to: https://www.gov.uk/government/consultations/tackling-unfair-practices-i…

I am delighted that action is finally being taken to protect future homeowners from the unacceptable costs which come with buying under leasehold, and I encourage everyone to take part in this consultation to ensure the strongest measures are taken. I will also be joining with colleagues in Parliament to add my voice to calls for action to be taken to help those already dealing with unfair leasehold agreements.