Burton and Uttoxeter’s MP, Andrew Griffiths, is backing the Government’s plans to end the 21st century scandal of housebuilders selling new builds on leasehold terms, rather than as traditional freeholds.
Leaseholds have historically been applied to flats where an individual does not own the whole building and so the annual leasehold provides the owner of the building with an annual income to maintain the upkeep of the building and its communal areas.
However, today more and more new houses are being sold as leaseholds for no good reason. This has resulted in homeowners being unfairly charged with ground rent estimated to rise over 3,000% over the course of a lease. This has left many homes unsellable and even makes it more difficult for homeowners to make changes to their own home. But earlier this week, the Communities and Local Government Secretary, Savid Javid MP, announced the Government’s plans to bring this practice to an end.
Andrew said: ‘This is a very welcome announcement from the Government. In Britain, we dream of owning our own home but for too long for those buying a home it hasn’t actually felt like this – with spiralling ground rent it can often become a nightmare.’
‘This is just small part of the Government’s plans to fix the broken housing market but it will have a big impact and ensure that owning your own home is more than just an ambition but a reality. This will provide real practical help to prevent new home owners being left surprised and stung with a hefty bill from the developer. This is a case of commitment made, commitment delivered.’
To stop developers from this practice the Government is proposing a number of measures that will discourage property companies from selling on such terms and ensure that new home owners are not hit with unjust bills.
Mr Javid said: ‘Pop down the shops today – whatever you buy; once you’ve paid it belongs to you. Too many of the new houses built today are not sold on traditional freehold terms, but as leaseholds. This isn’t a clever business model, it’s an extortion racket. Enough is enough’.