01278 457 891 01308 459 533 01305 458 189 01823 446 200 01935 382 680

MEDIA CENTRE

Blogs by Team Member

Blogs by Law Category

Proposal to outlaw the sale of new build leasehold houses

Posted on 8 August 2017 by Siân Merriott

Proposal to outlaw the sale of new build leasehold houses

Following on from the government’s Housing White Paper issued in February 2017 which highlighted the government’s aim to improve consumer choice in the leasehold sector and to consult “on a range of measures to tackle unfair and unreasonable abuses of leasehold”. On 25th July 2017 the government issued a consultation paper entitled “Tackling unfair practices in the leasehold market”.

The proposals only apply to England. The consultation period is eight weeks, closing on 19 September 2017, and seeks views on:

Prohibiting the sale of new build leasehold houses – the government does not think that houses should be sold on long leases unless there is a good reason for this, it is concerned that they are being sold on this basis “to create an income stream from the ground rent or to generate additional income from the sale of the freehold interest”. The consultation paper asks what restrictions should apply on the sale of houses on long leasehold terms.

Limiting ground rents – the government is concerned by the rising level of ground rents and the increasing frequency of ground rent reviews. It wants to introduce measures to limit ground rents in new leases. The consultation invites views on what steps could be taken to improve the position of existing owners of leases.

The consultation also seeks views on excluding leaseholders from possession orders because of arrears of ground rent and views on freeholders being able to challenge service charges for mixed tenure estates with shared facilities.
 

Posted in: Buying & Selling Your Home