New-build houses to be sold as freehold

Housing Secretary James Brokenshire has said that all new-build houses will be sold as freehold in bold move to tackle unfair leasehold practices.

In a speech to the Chartered Institute of Housing conference in Manchester, Brokenshire confirmed plans to abolish the selling of new houses as leasehold properties and reduce ground rents for new leases to zero – putting cash back into the pockets of future homeowners.

As such, ministers will introduce a new time limit of 15 working days and a maximum fee of £200 to make the home buying process quicker, easier and cheaper. Brokenshire has also instructed Homes England to renegotiate Help to Buy contracts to explicitly rule out the selling of new leasehold houses, other than in exceptional circumstances, to protect new home buyers from unscrupulous charges.

He said: “We have long recognised that we have a responsibility to confront unfairness in the leasehold market. Last year we consulted on proposals including the leasehold house ban and ground rent reduction.

“Today I can confirm we will go ahead with our original plan to reduce ground rents on future leases to zero, as opposed to a cap of £10 per year. And we will legislate to ensure that in the future – save for the most exceptional circumstances – all new house will be sold on a freehold basis. We are committed to taking bold action to reform the sector and will be pressing ahead as soon as parliamentary time allows – helping us delivery our promise to make the home buying and selling process quicker, cheaper and easier.”