People buying new-build houses in England will no longer be obliged to enter leasehold agreements, the government has announced.
The plans announced mean anyone buying a flat – or a house – on a lease of longer than 21 years will also not have to pay any ground rent.
Earlier this year, it was announced that the government was seeking to end ‘long-term financial abuse’ by some developers who are selling new-build homes on a leasehold basis.
Communities Secretary Sajid Javid said that the move is part of action to deliver a fairer, more transparent system for home owners to help fix the broken housing market and build a Britain fit for the future.
The announcement comes at the end of a consultation period in which there was an overwhelming response in favour of Government plans to tackle the unfair practices in the leasehold sector.
While there is an acknowledgement from the Government that where there are shared facilities, such as in the case of apartments, there is a justifiable reason for them to be leasehold; Regency Residential have for a while now, recognised that some developers aggressively ramp up ground rents. All of our leasehold apartments however, are in line with RPI and therefore only increase in line with inflation.
Regency Residential welcome any new industry legislations ensuring that all of our clients can feel confident when using our residential or investment services.