Sales of new-build leasehold houses banned
The selling of new-build leasehold houses will be banned as announced in the Governmental response to the leasehold reform consultation.
The Communities Secretary Sajid Javid also confirmed that in an attempt to end the current “feudal practices” in Britain’s construction industry, ground rents will be set to zero.
Highlighting the recent leasehold scandal and ongoing suffering of many residential leaseholders, Javid stated that: “It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms.”
He also drew attention to the “overwhelming” response that the Government had received following the launch of the consultation earlier this year, with professionals and consumers alike urging the Government to tackle the problem.
Announced today, the change will bring a ban on the sale new-build leasehold homes. It will apply to all properties, except those subject to certain schemes e.g. shared ownership.
In order to support those who are currently living in a leasehold home, the government has stated that it will work with the Law Commission to ease the process of extending a lease purchasing freehold.