The sale of new-build homes under leasehold instead of freehold could be banned under new Government proposals which it says will create a 'fairer, more transparent system for homebuyers.'
Communities secretary Sajid Javid says he wants to put a stop to 'unjust' and 'unnecessary' practises in which the purchaser buys the right to occupy and use a property but not ownership of the land itself.
They often face high fees and costs from the landowner, making the property more difficult to sell.
Leasehold agreements usually apply to flats and apartments where owners do not own the land on which their home is built.
Under new proposals, subject to an eight-week consultation, the payment of ground rents on new build homes could be banned outright.
Mr 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 spiralling ground rents.
'Enough is enough. These practices are unjust, unnecessary and need to stop.'