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Property Section

Government bans new leasehold houses and sets zero ground rents

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Other changes include ground rents on new long leases – for both houses and flats – being set to zero

Communities Secretary Sajid Javid has announced a ban on leaseholds for almost all new build houses (except where necessary such as shared ownership), effective from today, 21 December. Ground rents on new long leases – for both houses and flats – will be set to zero.

Other measures to be introduced include:

  • working with the Law Commission to support existing leaseholders and make the process of purchasing a freehold or extending a lease much easier, faster and cheaper
  • providing leaseholders with clear support on the various routes to redress available to them
  • a wider internal review of the support and advice to leaseholders to make sure it is fit for purpose in this new legislative and regulatory environment
  • making sure freeholders have equivalent rights to leaseholders to challenge unfair service charges.

 

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