James Brokenshire announces consultation to cap unfair leaseholdsMake Text Bigger
The Government’s proposal is for the vast majority of new houses to be freehold with ground rents for new leases capped at £10.
Housing Minister, James Brokenshire, said: “Unfair ground rents can turn a homeowner’s dream into a nightmare by hitting them in the back pocket, and making their property harder to sell. That’s why I’m taking concrete action to protect homeowners and end those unscrupulous leasehold practices that can cost tenants hundreds of pounds.
“This can also mean that selling their home is more expensive and take longer than selling a freehold property.”
Mark Hayward, Chief Executive, NAEA Propertymark comments on James Brokenshire’s announcement of a consultation to improve the leasehold sector: “Thousands of homeowners across the country are facing escalating ground rents, charges for making alterations to their properties and unable to sell their home. Therefore, it’s only right the government looks to crackdown on unfair leasehold practices to stop even more people feeling trapped in homes they cannot afford to continue living in.
“Our recent Leasehold: A Life Sentence?1 report found almost half (45%) of leasehold house owners didn’t know they were only buying the lease until it was too late, two thirds (62%) feel they were mis-sold and the vast majority (94%) regret buying a leasehold. This shows that for too long, housebuilders and developers have not been transparent enough about what it actually means to buy a leasehold property.
“However, this announcement is only good news for those looking to buy a leasehold property in the future. With 4.2 million leasehold properties in England, many will remain stuck in their lease with no straight forward way out and the industry needs to help them.
1Opinium surveyed 1,103 homeowners who bought a leasehold house over the last 10 years, and currently live in it from 10th April to 8th May 2018.
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