NAEA Propertymark comments on the HCLG’s Leasehold Reform report, out today

Mark Hayward, Chief Executive, NAEA Propertymark comments on the Housing, Communities and Local Government Committee’s Leasehold Reform report, out today.

“We welcome today’s recommendations from the Housing, Communities and Local Government Committee to crackdown on unfair leasehold practices, as thousands of homeowners are facing escalating ground rents and left unable to sell their homes.

“Our Leasehold: A Life Sentence?¹ report, launched last September, specifically looked at the problems surrounding leasehold house purchases, revealing that 62 per cent felt they were mis-sold their leasehold house and an overwhelming 94 per cent regretted buying a leasehold. We wholly support the recommendation for the Competition and Markets Authority (CMA) to investigate mis-selling in the sector, as for too long, housebuilders and developers have not been transparent enough about what it actually means to buy a leasehold property. Additionally, the suggested requirement of a standardised key features document at the start of the sales process will help provide consumers with the clarity and transparency they need.

“When the Committee announced the consultation to improve the sector in October last year, we were clear this was only positive news for those looking to purchase a leasehold property in the future. We’re therefore pleased the Committee have noted that it is legally possible to introduce legislation to remove onerous ground rents in existing leases.”

Kindly shared by NAEA Propertymark