Government proposes changes to unfair leasehold and ground rent agreements

July 26, 2017

Announcement 25th July 2017 from Department for Communities and Local Government and Sajid Javid MP headlines ‘Crackdown on Unfair Leashold Practices’.

Radical new proposals to cut out unfair abuses of leasehold have been announced by the government in a major move that will deliver a fairer, more transparent system for homebuyers.

Leaseholds on new-build houses could be scrapped and ground rents could be dramatically reduced, under government plans subject to public consultation.

Communities Secretary Sajid Javid has set out plans to ban new build houses being sold as leasehold as well as restricting ground rents to as low as zero. This can often expose homebuyers to unreasonable and long-term financial abuse.

Communities Secretary, Sajid Javid said:

“It’s clear that far too many new houses are being built and sold as leaseholds, exploiting home buyers with unfair agreements and spiraling ground rents. Enough is enough. These practices are unjust, unnecessary and need to stop.

“Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future”.

Read the announcemnt in full including all measures subject to 8 week consultation click here.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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