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.”