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You are here: Home / Latest News / First squawk from the (smaller) house builders

First squawk from the (smaller) house builders

July 29, 2017 //  by Sebastian O'Kelly

The housebuilders have been very shy to discuss leasehold, with the Home Builders Federation even turning down BBC R4’s hugely influential Today programme when LKP was on.

Taylor Wimpey has said very little; Countryside Properties plc which has been selling doubling ground rents this year, has said nothing at all.

Now there is a squawk: the House Builders Association (HBA) – the housebuilding division of the National Federation of Builders (NFB) – thinks that leaseholds can still be a legitimate model of ownership for housing.

HBA members are the small and medium-sized house builders, who tend to work within a 15-mile radius of their head office.

Rico Wojtulewicz, policy advisor for the HBA, explained how on BBC Radio 5 Live: “An HBA member in Sheffield offers 249-year leases with ground rent charges of £100 annually, increasing then by £100 every 30 years.

“Ground rents can be legitimate for the adoption of roads, sustainable drainage costs, maintenance of common spaces, or lighting on a site. However, there needs to be clarity in the process and fees need to be fair. Value doesn’t end at the point of sale.”

Rather than completely outlawing leaseholds on new-build homes, the Government ought to explore ways to make the system fairer in a manner that works for people, the organisation says.

In fact, ground rents do not contribute to the adoption of roads and drainage. They are invariably for no service whatsoever.

Houses on managed estates whether leasehold or freehold houses pay service charges for these matters, which vary according to the expense required.

Ground rents are simply a levy whose terms are set out in the lease. They are for no service whatsoever.

Related posts:

CMA ground rentSettle up with doubling ground rent victims or see you in court next year, CMA tells house builders Brokenshire to meet house builders and freehold investors … but no leaseholders Will CMA investigation at last give cheated leaseholders the chance to sue plc house builders? Government will cave in to retirement house builders over ground rents, says Times BBC R4 MoneyBox hears that a CMA mis-selling ruling could see leaseholders suing plc house builders. Hope so!

Category: Ground rent scandal, Latest News, News, Taylor WimpeyTag: Countryside Properties plc, Home Builders Federation, National Federation of Builders, Taylor Wimpey

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Reader Interactions

Comments

  1. Linda

    July 29, 2017 at 10:13 am

    Crickey when advisors for the house builders can not get his facts right , god help us !! Ground rents do not contribute to anything, , that’s the maintenance fees / charges that pay for the lights/ roads etc. Another bill you fleece us with

  2. Kim

    July 29, 2017 at 4:06 pm

    The party’s over for the Spivs/ crooked agents/ solicitors and surveyors who have collectively shafted leaseholders and made their lives miserable. I would like to see some of this lot prosecuted for theft , fraud, and demanding undue monies with menaces. Nothing but Rachmanist gangsters In my view- so there!!!!!

    • Delia

      July 31, 2017 at 7:32 pm

      I agree with you whole heartedly Kim. I have heard of some dear old pensioners who have committed suicide because of extortionate service charges. Why has this been going on for so long!!! We have been fighting the cause for absolute years!!!

      Delia

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