Leaseholds on new builds set to be banned

THE Government will ban leaseholds for almost all new build houses in a crackdown on “feudal” practices.

It is also set to ensure that ground rents on new long leases in England are set to zero, for both houses and flats, as well as making it easier and cheaper for leaseholders to buy out their freehold.

It made the announcement after holding a consultation into the leasehold system after the scandal of “doubling” ground rents emerged, in which the sum payable to the freeholder doubles every 10 or 25 years.

Sajid Javid, the Communities Secretary, said: “It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms. It’s clear from the overwhelming response from the public that real action is needed to end these feudal practices.”

The move to ban leaseholds will not retrospectively affect the 1.4m houses that currently have such contracts.

Sebastian O’kelly, a campaigner at the Leasehold Knowledge Partnership, said: “This is a huge vindication of our efforts – and those of The Daily Telegraph…. Ending leasehold houses and setting new ground rents to zero are excellent first steps to stopping developers from turning ordinary people’s homes into highly complex investment vehicles.”