Funding for new leasehold houses to end
New Government funding schemes will no longer be able to use the
money for unjustified new leasehold houses, in a continuing push
to tackle unfair and abusive practices within the leasehold
system.
The move was announced by Communities Secretary, The Rt Hon
MP, as he outlined the
Government’s next steps towards delivering both the homes the
country needs and a fairer, more transparent system for
homebuyers.
Among the measures announced today are:
-
· New proposals
for three-year minimum tenancy terms, with a six-month break
clause, to make renting more secure helping renters put
down roots, and give landlords longer term financial
security.
- · The
release of £450 million 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 £100 million Community Housing Fund, to deliver
affordable housing tailored to local needs, putting communities
in the driving seat.
The Communities Secretary also confirmed that through Homes
England almost 1,000 new affordable homes will be built on a
previously undeveloped site at Burgess Hill,
Sussex demonstrating how a more strategic – and assertive –
approach to getting homes and large scale projects built was
delivering results. The Burgess Hill site will also see
essential, new infrastructure built with two new primary schools,
a secondary school and a range of leisure facilities including a
new public woodland.
Speaking to an audience at the Policy Exchange The
Rt Hon MP, Secretary of State
for Communities, said:
“We need to get everyone on board to build at scale and pace to
build the homes this country needs.
“But this isn’t just about getting the numbers up. We don’t have
to make a false choice between quality and quantity.
“It’s also about building places that people are happy to call
home. Places where they can come together in strong, thriving
communities for generations to come.”
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.
And with 1.4 million leasehold houses across England and the
number of leasehold sales rapidly growing, this latest
announcement is another example of the Government taking action
to make the leasehold market fairer.
The Secretary of State continued:
“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”.
ENDS
Notes to Editors
