A Bill aiming to bring in a compensation scheme for those with unfair leaseholds has secured a second reading.
Having avidly campaigned for leasehold reform, Labour MP Justin Madders was behind the Bill making it to the second stage of assessment, likening the possible compensation scheme to that of payment protection insurance.
The deputy chair of the Leasehold Reform All Party Group stated that government proposals don’t quite go far enough for those currently being affected by unfair leaseholds, commenting on the barriers put up by developers and freeholders. In turn, he highlighted that this could have a knock-on effect on the consumer, potentially hindering their ability to sell the property later down the line.
Talking about the proposed Bill, Madders stated that it would bring a new pricing structure, with the cost of the leasehold being no more than ten times the ground rent.
He highlighted the need for a scheme where consumers had been misled as to the nature of what they were purchasing, stating that those within the industry – developers, freeholders, conveyancers and finance companies – should take responsibility.
A second reading of the Bill is due to take place on 2 February.
