Labour MP Roger Godsiff has raised the issue of “extortionate increases” of ground rent charges in Parliament.
He has tabled an Early Day Motion calling for an end to freeholders being able to “blackmail home owners for large sums of money” through ground rents.
The EDM notes “with concern” incidences of “unscrupulous property builders selling leasehold homes to buyers who are then charged extortionate increases to their ground rent charges”.
He cites recent revelations that Taylor Wimpey included ten-year doubling ground rents clauses in leases on some properties between 2007 and 2011.
The motion calls on the Government to take action to change the current situation, adding: “Other countries, including Scotland, have a commonhold system where ground rent charges are not levied; and further urges the Government to bring in a similar system where new leases have no time limit, ground rent charges are not levied, and residents of flats control their own building and the land it sits on.”
EDMs rarely get debated by MPs but are an important tool for raising issues. This does need a bit more promotion though as so far Godsiff is the only signatory since launching it on Wednesday.
You can read the full text on the Parliament website.
Comments (2)
Not just Ground Rent. Rip off insurance premiums through freeholders £400 to insure a studio flat built in 1984 in SE19!. No transparency when insuring through the freeholder unlike managing agents.
What a very good idea but judging by the number of posts this morning it doesn’t seem to have caught the imagination of your readers!
Commonhold is far from perfect but would offer a much better solution than the current free for all with managing agents and freeholders having huge scope to fleece homeowners.