Sajid Javid has threatened to clamp down on the ‘feudal’ racket of housebuilders building leasehold homes with onerous ground rents.
The Secretary of State at DCLG is planning to use the Help To Buy scheme as leverage, which LKP has been urging since October when it began the campaign against leasehold houses.
Of course, plenty of leasehold flats also have appalling lease terms – not highlighted by the developer-recommended conveyancing solicitors.
Mr Javid said:
‘The last thing I want to do is tie the industry up in more red tape at a time when supply is already so far short of demand.
‘But as a Government committed to building a fairer society, I don’t see how we can look the other way while these practically feudal practices persist.
‘So I will look to ensure Help to Buy equity loans are only used to support new build houses on acceptable terms.’
Mr Javid said he had heard ‘all kinds of horror stories’, including homeowners told they could buy their lease for 30 times the ground rent, ‘only to discover the freehold has been sold to a third party who won’t give it up for less than 100 times the ground rent’.