Communities secretary Sajid Javid will today announce new plans to cut out unfair and abusive practices within the leasehold system, including a ban on leaseholds for almost all new build houses.
Changes will also be made so that ground rents on new long leases for both houses and flats are set to zero and to make it easier and cheaper for existing leaseholders to buy out their freehold.
“It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms,” Javid said.
“It’s clear from the overwhelming response from the public that real action is needed to end these feudal practices.
“That’s why the measures this government is now putting in place will help create a system that actually works for consumers.”
The government is working to produce a fairer and more transparent system for homeowners.
Leasehold properties are generally flats with shared spaces.
There are 1.4m leasehold houses across England, sales of which are rapidly growing as developers sell houses on these terms, adding further costs to overstretched house buyers, the government said.