Labour's new deal for leaseholders

The BSA has responded to Labour's proposals for leaseholders.

Labour have outlined their plans to tackle the problems with leasehold. They have called upon the Government to hold a full inquiry into the mis-selling of leasehold homes, and have made the following five pledges:

1. End the sale of new private leasehold houses with direct effect and the sale of private leasehold flats by the end of our first term in Government.

2. End ground rents for new leasehold homes, and cap ground rents for existing leaseholders at 0.1% of the property value, up to a maximum of £250 a year.

3. Set a simple formula for leaseholders to buy the freehold to their home, or commonhold in the case of a flat, capped at 1% of the property value.

4. Crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, requiring transparency on service charges and giving leaseholders a right to challenge rip-off fees and conditions or poor performance from service companies.

5. Give residents greater powers over the management of their homes, with new rights for flatowners to form residents associations and by simplifying the Right to Manage.

Whilst we disagree with the outright ban on leasehold, we welcome these robust proposals and agree with the majority of the policy intent. See here for our full response.