To ask the Secretary of State for Housing, Communities and Local Government, what steps the Government is taking to ensure that developers remove onerous ground rent clauses in leasehold contracts.
Answered on
13 December 2018
The Government is clear that unfair leasehold practices have no place in the housing market. We are committed to improving the leasehold system by making it fairer and more transparent.
It is right that developers who sold leaseholds with onerous terms should support their customers to amend such lease terms. Some developers have introduced assistance schemes which is welcome. The Government is engaging with industry to urge them to take proactive steps to vary leases for those with onerous ground rent clauses.
We have launched a consultation looking at the reform to the leasehold system, which closed on 26 November, which sets out our proposals for banning new leasehold houses and restricting ground rents to a peppercorn. We are currently analysing responses and will publish the Government consultation response in due course.
We are working with the Law Commission to make buying a freehold or extending a lease easier, quicker and cheaper.
In July the Secretary of State announced that no new government funding scheme will be used to support the unjustified use of leasehold for new houses.
We are helping existing leaseholders by: making it easier for leaseholders to form Recognised Tenants' Associations so they can hold the management of their block to account; set up a Working Group, chaired by Lord Best, to look at how property agents can be improved, including a single, mandatory Code of Practice for managing agents and whether any fees should be capped or banned; and published a 'How to Lease' guide for consumers.