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New measures to cut down on unfair leasehold practices
Communities Secretary Sajid Javid has announced new measures to crackdown on unfair and abusive practices within the leasehold system, including a ban on leaseholds for almost all new build houses.
As part of the announcement, Javid revealed that changes will be made so that ground rents on new long leases are set to zero, and that the Department for Communities and Local Government will also make it cheaper and easier for existing leaseholders to buy-out their freehold. There are currently 1.4 million leasehold houses across England.
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.”
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