Government’s ban on new leasehold houses “does nothing to help existing leaseholders”

Prominent leasehold reform campaigner Louie Burns has warned that the Government’s proposals to reform the leasehold house system risk creating a two-tier housing market and do nothing to assist leaseholders already affected by the national ground rent scandal.

Yesterday the Government confirmed plans to abolish the selling of new houses as leasehold properties and reduce ground rents for new leases to zero, in a move it says will end the “unscrupulous practice of unnecessary leaseholds”.

Louie Burns, Managing Director of enfranchisement specialists The Leasehold Group of Companies, said: “Naturally, we welcome the ban on ground rents for new leasehold houses. There is absolutely no reason for a house to ever be sold on a leasehold basis, so ending this exploitative model of home ownership is certainly a step in the right direction.

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