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Leasehold ban will scupper thousands of new homes, charity warns


The Government’s proposed leasehold ban could unwittingly jeopardise thousands of new homes, according to a housing charity.

The Government is proposing to ban leasehold terms for new build homes.

Last year it emerged that some property developers had been selling new-build houses on a leasehold basis with very expensive ground rents.

But the National Community Land Trust Network is warning that a leasehold ban would scupper new homes built through community land trusts.

These use leases to ensure property prices are kept affordable and linked to incomes in the local area.

The NCLTN are calling on the government to protect community-led housing by exempting CLTs from the ban.

NCLTN director Catherine Harrington says “Community land trusts have played no role in the exploitation of leasehold.

“While we support the consultation’s goal of addressing the unfair and unreasonable abuses of leasehold by developers and private investors, CLTs are one of a few approaches using leasehold to deliver genuinely affordable housing.”

The charity has joined forces with co-housing firm UK Cohousing to suggest a code of conduct for public interest leases, where leasehold best practices are promoted.

Harrington adds: “We hope other responsible housing providers will join us to campaign for a code of conduct for public interest leases.”



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The Building Societies Association and housing charity Shelter have backed the Government decision to consult on banning the sale of new build properties on leasehold contracts. Earlier today the Department for Communities and Local Government announced an eight-week consultation on plans to crack down on the practice. Last November it emerged that some property developers […]


The Conveyancing Association backs new-build leasehold ban

  The Conveyancing Association has thrown its weight behind Government proposals to ban unfair leasehold deals on new build properties. Earlier today the Department for Communities and Local Government announced an eight-week consultation on plans to crack down on the practice, saying it can harm consumers. The Conveyancing Association director of delivery Beth Rudolf says: […]


Government unveils new build leasehold ban

The Government has announced plans to ban the “unjust” practice of selling new build houses under expensive leasehold terms. Last November it emerged that some property developers had been selling new-build houses on a leasehold basis with very expensive ground rents. Some of the contracts saw ground rents double every 10 years. Today the Department […]

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  • CHRISTOPHER Gregory 30th August 2017 at 10:27 pm

    An all out ban will lead to unintended consequences. Better to impose caps and restrictions on gr escalation.

  • peter 30th August 2017 at 6:28 pm

    I have never heard such claptrap in my life!!! Yes let us sell affordable housing to the least educated of us (or not) by way of stitching them up with leases that will rip the heart out of the ‘sale on’ value with leases that will increase by inflation year on year (revised every 10). What will happen with lease rises when with Brexit, inflation is totally unpredictable over the next 10 years and it could well average 3-4%pa. There you go Mr and Mrs low paid, your lease has only increased by 30/40% (if your lucky) and your new payment will be, well, unaffordable!! Oh and by the way your house value has decreased because of this, you may as well sell it on to another sucker!! Better still ensure the NCLTN become regulated with the FCA and when the ‘proverbial’ hits the fan they can refund the clients for bad advice!! Oh, what did you say Mr Ombudsman “we can’t make the people who campaign for ‘Bad advice’ responsible, nor the Government for approving such tosh, nor the lenders for approving the Mortgages but I tell you what, we’ll pound you Advisers into the ground, make you totally responsible so you can pay your £3k excess per case and watch your premiums go up by 10 fold over the next 10 years!!!

    Disillusioned…bloody right I am!!!


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