William Eichler 21 December 2017

Government bans leaseholds for new builds

Sajid Javid has announced a ban on leaseholds for almost all new build houses as part of an effort to stamp out ‘unfair and abusive’ practices within the leasehold system.

The communities secretary said the Government would legislate to prevent the sale of new build leasehold houses except where necessary, such as in cases of shared ownership.

Mr Javid also said ground rents on new long leases – for both houses and flats – will be set to zero.

Alongside these measures, Mr Javid said the Government would 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.

‘It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms,’ said Mr Javid.

‘It’s clear from the overwhelming response from the public that real action is needed to end these feudal practices.

‘That’s why the measures this government is now putting in place will help create a system that actually works for consumers.’

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