The home leasehold system needs reform, the Housing, Communities and Local Government Committee (HCLG) has said, releasing its report on leasehold.
Leaseholders in new-build properties are being treated as a source of profit, and the current system is unfairly weighted against them, according to the HCLG.
Its report identifies a number of issues that need reform, including:
- ground rents
- service charges and one-off bills
- permission charges
- dispute mechanisms
- advisory services
- costs to extend leases.
In its inquiry, the committee received ‘considerable’ evidence of developers ‘incentivising and insisting’ on specific solicitors being used.