LEASEHOLDS AXED AS PART OF GOVERNMENT SHAKE UP TO CREATE FAIRER HOUSING MARKET
The Government has announced plans to axe Leaseholds for most new build homes in a bid to address unfair practises and create a fairer housing landscape.
The Rt Hon James Brokenshire MP announced details at the Chartered Institute of Housing conference in Manchester, confirming plans to abolish the sale of new homes as Leasehold properties whilst also removing ground rents for new leases.
The measures aim to prevent Freeholders and agents drawing out the home buying process and in some cases, charging extortionate fees. Ensuring that Leaseholders have access to the vital information they need to sell their home, new measures will limit the time to respond to 15 working days with a maximum fee of £200, making the process quicker, easier and more cost effective.
Andrew Smith, Partner at Smith and Sons said: “This recent announcement will introduce significant changes within the residential housing sector, speeding the process up in terms of accessing information and removing the doubling ground rent arrangements which we have seen in recent times with new build homes. Home buying is notoriously complex, costly and labour intensive. These measures should help remove some of the barriers whilst helping to make a property more saleable where the Freehold interest is also owned”.
“We welcome these changes that will help create a fairer and more balanced home buying landscape.”
The measures announced aim to reinforce the Government’s commitment to deliver decent and fair housing having promised to create an additional 300,000 new homes a year by the mid-2020s.