Leasehold Reform

In a statement delivered in the House of Commons, the minister outlined the government's plans to reform the leasehold system. The minister acknowledged the widespread concerns regarding the current leasehold system, which has been a source of frustration for many homeowners. The minister emphasized the government's commitment to addressing the issues within the leasehold system and ensuring a fairer and more transparent process for homeowners. The proposed reforms aim to empower leaseholders, providing them with greater control and flexibility over their properties. One of the key aspects of the reform is the intention to ban the sale of new leasehold houses, except in exceptional circumstances. This move is designed to prevent the exploitation of homebuyers and ensure that the majority of new-build properties are sold as freehold. Additionally, the minister outlined plans to introduce measures to cap ground rents for new leases at a nominal amount, addressing the concerns over escalating ground rent charges that have burdened many leaseholders. The government also intends to provide leaseholders with the right to extend their leases at a peppercorn rent, further enhancing their ability to maintain control over their properties. The minister acknowledged the complexities involved in reforming the leasehold system and assured the House that the government will work closely with stakeholders, including leaseholders, developers, and industry representatives, to ensure that the proposed changes address the root causes of the issues and deliver meaningful improvements for homeowners. The minister's statement underscored the government's recognition of the need for comprehensive reform and its commitment to creating a more equitable and transparent leasehold system that better serves the interests of homeowners.