The BSA has today responded to the Government consultation tackling unfair practices in the leasehold market.
Commenting Paul Broadhead, Head of Mortgage Policy at the BSA said:
“The increase in newly built homes being sold on a leasehold basis is rarely to the benefit of homebuyers, so the Government’s focus on protecting consumers in this area is encouraging. In too many cases, these properties are sold as leasehold solely to create an additional revenue stream for third party freeholders.
“We support Government’s proposal to restrict the creation of new build leasehold houses but it is important that the provision of affordable homes, such as community land trusts, Co-housing and shared ownership is not adversely impacted.
“Consumers should be more aware of their rights, understand their options and recognise how to challenge terms when it comes to dealing with onerous ground rent and other potentially unfair elements associated with leasehold homes. Easily accessible information should be available to existing and potential leaseholders for clarification.
“While these important improvements are needed, it is important that any Government changes do not blight current leaseholders or exacerbate their existing issues.”
The full BSA response to the DCLG consultation ‘tackling unfair practices in the leasehold market' can be found here.