Sir Vince Cable, LibDem leader and a member of the All Party Parliamentary Group on leasehold has condemned the government inaction over the leasehold scandal.
It was another example of a government failing to tackle problems because it was “consumed by Brexit”.
“The Conservatives have developed a very bad habit of kicking cans down the road,” Sir Vince
told the Independent.
“And here we are again – another consultation instead of legislation, a government consumed by Brexit that talks rather than does.”
The Independent reports that “flagship” plans to stop house buyers being “exploited” by ripoff leases have been delayed, nearly a year after the government vowed to act.
“Last December, ministers announced they would outlaw leasehold agreements on most new homes and scrap ground rents on those that still went ahead in multi-flat buildings.
“The move followed protests over “feudal practices” that allowed ground rents to double every 10 years and for freeholds to be sold to investment companies – which then demanded tens of thousands of pounds to buy them.
“But instead of pressing ahead with the crackdown, James Brokenshire, the housing secretary, has announced a fresh consultation near-identical to one staged last year.”
Announcing the fresh consultation, Mr Brokenshire said: “Unfair ground rents can turn a homeowner’s dream into a nightmare by hitting them in the back pocket, and making their property harder to sell.
“That’s why I’m taking concrete action to protect homeowners and end those unscrupulous leasehold practices that can cost tenants hundreds of pounds.”
Ground rents for new leases would be capped at £10, he said – although last December’s announcement said they would be scrapped altogether.
https://www.independent.co.uk/news/uk/politics/conservative-party-house-buyers-expensive-leases-mortgage-housing-rent-to-buy-a8582836.html
Related posts:
Government to ban leasehold houses and set ground rents ‘as low as’ zero
Respond NOW to government consultation to reform leasehold
LKP guidance for responding to the government consultation on tackling unfair practices in the leasehold market
MPs tell government consultation: End leasehold houses. Scrap new ground rents. Ignore pleas for self-regulation. Ban Help To Buy on rip-off leaseholds
Responses to the government consultation
Has Brokenshire trashed Sajid Javid’s reforms of leasehold?
Government treats Housing Ministry as an unimportant department. A housing minister is just a junior post. Any cabinet re-shuffle, they are off, thus they don’t stay long. Governments treat Housing with low priority. All governments, be it Tory or Labour have no guts to get rid of this feudal system of Leasehold. What a waste of tax payers money to get A Law Commission to tinker with Leasehold Reform without any result to better the 2002 Leasehold and Commonhold Reform. Commonhold no where to be seen since 2002.
To be fair they did add “Housing” to the SoS title. Problems solved.
Don’t you love politicians.
Open message to Mr Broken promises…
“Sir, either you do not study your housing brief eniugh or choose to ignore well known facts. Recognised Tenants Associations are toothless. Making it easier to form one is not going to make biting back against leasehold injustices any easier.
I got an RTA set up once – will never get that time back. Ignored by freeholder and agents, we got a nice certificate from the property court. Made no difference at all. Freeholder and agent still ignored RTA letters. All we wanted was annual accounts which were not being sent to us as required per lease. Modest enough, no?
Now we have an RTM company and that has proved another travesty.
So what to do? Oh yes, an RTA can go to tribunal to be hectored by a barrister that the leaseholders have to pay for, even when trying to enforce rights. Even a win at a tribunal can mean absolutely no change. An RTA could spend its life applying to a tribunal for no effective remedy.
You could learn all these things by studying the forums where real citizens report real hassles created by the absence of effective leadehold rights. Assuming your government could stop obsessing over party politics for a minute.
RTAs are a sick joke, Sir. What say you different and where is your evidence?
Mr Broken Promises is an expert in just that, and this corrosive situation looks set to run a while longer.
Sebastian/Martin, I found this in Companies House, a company linked to Tchenguiz Family Trust who work as a Landlord
.
NOTES FOR THE FINANCIAL STATEMENTS YEAR ENDING 31/12/2017
In December 2017 the Department for Communities & Local Government (DCLG) published the outcome of the “Tracking Unfair Practices in the Leasehold Market” consultation during the year.
The main pronouncement effecting the company being that the Government would work with the Law Commission to support existing leaseholders – including making buying a freehold or extending a lease easier, faster fairer and cheaper.
Should such legislation be introduced it is likely that this would reduce the amount of premiums received at the point of lease extension.
These premiums are a material component of the valuation of the Investment Properties held by the group.
It is unknown what form the legislation, should it be enacted, will take and so it is not possible at this time to assess the impact of any legislative change on the valuation.
VALUE OF INVESTMENT PROPERTIES
The key accounting estimate in preparing financial statements relates to the carrying value of an investment property which is stated at fair value, as valued by the directors. However the valuation of the Company’s Investment Property is inherently subjective, as it is made on the basis of valuation assumptions which may in future not prove to be accurate.
Any Comments?