Flat owners could be left with a two-tier market after “incredibly weak” measures to cut out unfair and abusive leasehold practices were announced by the government.
The head of enfranchisement specialist Leasehold Solutions slammed December’s announcement, which followed in the wake of the growing anger surrounding spiralling ground rents.
The organisation’s managing director, Louie Burns, said:
"Of course, we would welcome any reforms that make the leasehold system fairer for the millions of homeowners in England and Wales caught in the web of paying extortionate ground rents, onerous service charges and lease extensions."
"However, the measures announced by the Government are incredibly weak. While the offer to abolish ground rents for new leases seems an attractive offer, it actually leaves existing leaseholders in a worse position because it will create a two-tier market, making new build properties with zero ground rents more attractive, while existing leaseholders will have less chance to sell their homes, as ground rents will still apply to their properties."
“Essentially developers have got off scot-free and, as usual, existing leaseholders will suffer the harshest consequences.”