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Government funding for leasehold homes withdrawn

Government funding will no longer be available for ‘unjustified’ new leasehold houses, in measures announced yesterday.

 

Communities secretary James Brokenshire MP made the call in a bid to continue tackling ‘unfair and abusive practices’ within the leasehold system, plans outlined earlier this year.

 

In December, then communities secretary Sajid Javid announced a ban on leasehold for almost all new builds.

 

Further measures announced yesterday include proposals for three-year minimum tenancy terms with a six-month break clause, to make renting more secure and help tenants to ‘put down roots.’

 

It also said £450m of funding would be released to speed up the delivery of homes on sites of surplus public sector land and to encourage pace and modern methods of construction as part of the building process.

 

A £100m community housing fund was also launched to deliver affordable housing to communities.

 

Brokenshire says: “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.”

 

The government is also 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. 

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