Plans to abolish leasehold for most new homes

Property expert David Leake of Housesetc introduces us to some new proposed changes within the industry.

All new-build houses will be sold as freehold in order to tackle the continuation of unfair leasehold practices and prevent future homeowners from being trapped in exploitive arrangements.

The proposed changes:

• Ground rents on new leases to be reduced to £0.

• All new houses to be sold on freehold basis unless there are exceptional circumstances.

• Immediate action to ban Help to Buy being used to support the purchase of leasehold houses.

• If buyers are incorrectly sold a leasehold home, consumers will be able to get their freehold outright at no extra cost.

The first debate on leasehold abuses was held in 1884 with hundreds of examples.

A recent report found that:

• 94% of leaseholders regret their purchase.

• 93% would not buy another leasehold.

• 62% feel as though they were missold.

The scale of the problems faced by leaseholders to onerous contract conditions demands wholesale change.