James Brokenshire
It will no longer be possible for money from new government funding schemes to be used for “unjustified” new leasehold housing, under plans announced by communities secretary James Brokenshire yesterday.
Brokenshire announced the move as he unveiled other measures aimed at shaking up the housing market.
Among the measures announced were:
- New proposals for three-year minimum tenancy terms, with a six-month break clause, in a bid to make renting more secure.
- The release of £450m to speed up delivery of homes on sites of surplus public sector land and encouraging pace and modern methods of construction as a part of the building process.
- The launch of a new £100m Community Housing Fund, to deliver affordable housing tailored to local needs.
Brokenshire said: “Leasehold generally applies to flats with shared spaces, making multiple ownership more straightforward, but developers have been increasingly selling houses on these terms – adding further costs to over-stretched house buyers.
“The government is already working to make it cheaper and easier for existing leaseholders to buy-out their freehold and improve information available about redress for those consumers who face the most onerous terms.
“Changes will also be made so that ground rents on new long leases – for both houses and flats – are set to zero.
“We have seen leaseholders in new-build homes facing unexpected costs rising every year that bear no relation to services and that’s not fair.
“So from now on any new government funding scheme will contain the condition that the money cannot support the unjustified use of leasehold for new homes.”
