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.