Warning despite leasehold home ban
ASOUTHPORT councillor has welcomed the Government’s proposal to ban new property leaseholds – but still has concerns about residents already “trapped in a feudal system”.
Cllr Pat Keith, who has been campaigning to rid the property market of leasehold arrangements for the last two years, is thrilled about moves to introduce a new leasehold ban.
Communities Secretary Sajid Javid, when announcing the leasehold ban, said: “Selling new houses on a leasehold basis will be banned and new ground rents will be set to zero in a bid to end these practices in Britain’s construction industry.
“It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjust- ifiable charges and ground rent terms.”
Cambridge Ward representative Cllr Keith said: “I’m delighted the Government have kept their promise to take action on this totally unfair system but this doesn’t help those people whose homes are under lease.
“Ending leasehold houses and setting ground rents to zero is a good starting point.
“I hope this will put an end to investors capitalising on home buyers.
“The majority of these people have put every penny they have into buying a property and should not be exploited.”
Cllr Keith has previously warned residents that the growth of leasehold homes was becoming “a cash cow” for developers.
But, despite being happy about the introduction of the new ban, she said she was still concerned about residents already involved onerous in leasehold agreements.
She added: “I highlighted the cases of several homeowners who had to pay large sums of money just to improve their properties. So, in effect. they were tenants rather than owners and so were stripped of full decision making on their own homes, let alone the service charges they also have to pay.
“I hope the Government will now act to help them.”
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