New rules ‘the first step in a whole raft of government reforms’ to help Leaseholders
The leasehold reform bill, which concluded its journey through parliament last week, is the first step in a whole raft of government reforms designed to protect leaseholders, according to Eddie Hughes, the secretary of state for rough sleeping and housing.
The leasehold reform bill, which looks to restrict ground rents for future leaseholders, has been criticised by a number of property professionals for excluding existing leases from the ban, leaving a number of leaseholders still facing thousands of pounds of ground rent each year.
However, Hughes has advised that further action will be taken to address issues with existing leases.
He said: “I am delighted that we have put an end to ground rent charges for future homebuyers, as our ambitious reforms become law.
“This truly monumental change will set ground rent to zero on new leases from this summer – providing real life benefits to future leaseholders and saving them hundreds of pounds a year.
“This is the first step in a whole raft of government reforms to protect leaseholders and end unfair practices in the market.
“We continue to work towards making it easier, quicker and cheaper for leaseholders to buy their freehold or extend their lease.”
Linz Darlington, who is the CEO of lease extension specialists Homehold, last week called on the government to improve the situation for existing leaseholders by introducing additional reform without delay. But Hughes did not commit to a timescale for further action.