Government promises legislation to ban leaseholds on new-build houses
updated on 02 January 2018
Communities secretary Sajid Javid has promised new legislation to outlaw unfair and abusive practices within the leasehold system, including a ban on leaseholds for almost all new-build houses.
The current system often traps first-time buyers and elderly people in unsellable homes, and such unfair arrangements have been described as “feudal” in nature. As The Law Gazette reports, the government has promised measures to:
- prevent the sale of new build leasehold houses except where necessary such as shared ownership;
- set ground rents on new long leases – for both houses and flats –at zero;
- work with the Law Commission to support existing leaseholders and make the process of purchasing a freehold or extending a lease much easier, faster and cheaper;
- provide leaseholders with clear support on the various routes to redress available to them;
- create 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; and
- ensure freeholders have equivalent rights to leaseholders to challenge unfair service charges.
The news has been welcomed by campaigners, while the Law Society has said that it will contribute to the Law Commission’s review of residential leasehold law.
