John Healey MP comment on Government plans to ban leaseholds on new-build houses
John Healey MP, Labour’s Shadow Secretary of State for Housing, commenting on Government plans to ban leaseholds on new-build houses, said:
“The Government has known about and ignored the ground rents scandal for a long time, allowing hard-working families to be ripped off under costly leasehold agreements.
“Labour has said for the last year that using leasehold to sell homes is unfair and unjustifiable. And at the Election we said we’d end the routine use of leasehold ownership for all new homes and cap charges on ‘ground rents’ to stop the scam.
“The Government’s pledge is welcome but legislation is needed and this got no mention in last month’s Queen’s Speech. Home-buyers need legislation to ensure the end of this leasehold abuse, cap rip-off rises in ground rent and deal with existing contracts that contain unfair buy-out clauses.
“Nearly half of all newly-built properties were sold leasehold last year, and existing leaseholders need stronger rights too.”
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