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Conservatives plan ban on leaseholds for new build homes

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Thursday, 21 December, 2017
Conservatives plan ban on leaseholds for new build homes

The Secretary of State for Communities and Local Government has announced a crackdown on unfair and abusive leasehold practices to help fix the broken housing market so that everyone can have a place to call their own.

Key facts: These latest measures follow plans set out in the Housing White Paper, including making sure councils release more land for housing, building the right homes in the right places and improving affordability and protections for renters and buyers.

· Following an overwhelming public response from a consultation on leasehold practices, we are taking real action to end these feudal practices – replacing the existing system with one that works for consumers.

· We will be legislating to prevent the sale of new build leasehold houses except where necessary such as shared ownership, as well as providing current leaseholders with clear support on the various routes to redress available to them.

· We are working with the Law Commission to make the process of purchasing a freehold or extending a lease much easier, faster and cheaper.

· We will conduct a wider internal review of the support and advice to leaseholders to make sure it is fit for purpose in this new legislative and regulatory environment.

· We will ensure that freeholders have equivalent rights to leaseholders to challenge unfair service charges.

Why this matters: It is unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms. We are committed to fixing the broken housing market so that everyone can have a place to call their own, restoring the dream of home ownership and guaranteeing a better future for the next generation.

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