In a bid to eliminate ‘feudal’ practices, the Government will impose a leasehold ban on almost all new build homes in the UK.
It also intends to ensure that in England, ground rents are set to zero for new long leases in both flats and houses, and make it cheaper and simpler for freeholds to be bought out by their leaseholders.
The Government announced these measure after receiving a strong response to its review of the leasehold system. Consultations began after complaints arose about ‘doubling’ ground rents, in which the leaseholder is required to pay double the sum to the freeholder every 10 or 25 years. Such properties have been impossible to sell, and lenders have been refusing to issue mortgages for them.
Communities secretary Sajid Javid said that saddling homebuyers with punitive ground rent conditions, insupportable charges, and superfluous leaseholds was unacceptable.
Mr. Javid said that the strong public response proved that these feudal practices needed to be brought to an end. He confirmed that the Government was taking measures to create a system that works for people.