The government is calling on all those who bought re-sale properties with doubling ground rents to contact it.
This emerged after Andrew Selous, Conservative MP for South West Bedfordshire, raised the issue at the APPG meeting on April 26.
“Taylor Wimpey sold a lot of leases in my constituency, but I have a constituent who bought his property from someone who first bought from Taylor Wimpey and now the house builder is refusing to compensate him.
“I have a letter here from the Housing Minister Heather Wheeler on February 23 saying that the government does want housebuilders to extend the support to all, including those who bought their leases as second-hand buyers.”
Lakhbir Hans, the civil servant who heads the leasehold team, said she thought ministers were “still very keen that leaseholders have access to compensation schemes” and that the department was “monitoring the situation”.
Sir Peter Bottomley, APPG co-chair and co-patron of LKP, said: “We should put it round to all members of this group that if they have constituents who caught in this trap having bought second hand they should send details to the department so we have illustrative examples and can show how widespread the problem is.”
Beth Rudolf, of the Conveyancing Association, said it had carried out a survey of 1,200 homeowners and 235 said that they had not received any information up front from Taylor Wimpey, which “they should have done under the consumer protection and unfair trading regulations”.
“The difficulty is that if you want to enforce that trading standards has no resources and only have a £250,000 budget to enforce against 14000 estate agents.
“Can we please get some money into trading standards so they can carry out an investigation into why people are not being a advised of key information prior to purchasing a lease?”
Sir Peter Bottomley suggested that the survey be sent to ministers and copied to the secretary of the All-Party Parliamentary Group, LKP.