In Prime Ministers Question MP Andrew Selous asked about the practice of developers buying freehold land and selling on leasehold houses which he explained resulted in customers being “”ripped off”.
Prime Minister May answer made clear that as part of the White Paper “we will consult on a range of measures to tackle unfair and unreasonable abuses of leasehold”.
The Prime Minister ended her comments with these words. “I do not see why new homes should not be built and sold with the freehold interest at the point of sale.”
As a leader who wants to spread wealth and opportunity as widely as possible, will the Prime Minister ensure that we end the practice of developers buying freehold land on which they then sell new houses on a leasehold basis? Many first time buyers on Help to Buy feel that they are being ripped off by this practice and look to the Government for help.
I thank my hon. Friend for mentioning that issue, which he has raised with me previously. I know he is concerned about it and working on it. Our housing White Paper clearly sets out that developers should be building homes for people to live in. That means that we will act to promote fairness for the growing number of leaseholders, but we will consult on a range of measures to tackle unfair and unreasonable abuses of leasehold, as the Housing Minister has said. Other than in certain exceptional circumstances, I do not see why new homes should not be built and sold with the freehold interest at the point of sale.