House builders and freeholder groups have backed a Government pledge launched today to stop leaseholders being trapped in “unfair and costly deals”.

More than 40 property developers and freeholders, including big brands such as Taylor Wimpey and Barratt Homes, have already signed the government-backed pledge, which commits them to doing away with ‘doubling clauses’ that can result in ground rents soaring exponentially over a short period of time.

The freeholders who have signed have committed to changing the terms of leases for those who are affected.

Other industry bodies such as managing agents have also put their names down, vowing to act fairly and transparently in their dealings with leaseholders.

The Ministry of Housing Communities and Local Government also said it would look at ways to close legal loopholes that force leaseholders to pay unjustified fees – even if they win a hearing – when they take their freeholders to court over pernicious service charges. This includes consultation on whether these changes should apply to existing leases too.

The Government will also produce a new statutory code of practice for retirement leasehold properties to ensure event fees – such as extra charges when an owner becomes ill or dies – can’t be charged unexpectedly.

Developers and estate agents will be required to make all such fees clear to people before they buy.

James Brokenshire, Housing Secretary, said: “The new industry pledge – signed by leading freeholders and property developers – will further support existing and future leaseholders by protecting them from onerous fees.

“It’s great news that leading names such as Taylor Wimpey and Barratt Developments have already signed up to the pledge, and I want to see others who have not yet signed up do the right thing.”

Housing minister Heather Wheeler added: “We want to make sure we have a leasehold system where people are able to challenge exorbitant rates and high service charges. It is unacceptable that the burden of legal fees – potentially running into tens of thousands of pounds – is preventing people from seeking justice.

“The plans will stop leaseholders from picking up the tab for unjustified legal costs – creating a housing market that truly works for everyone.”

Commenting on the pledge, Richard Silva, executive director of freeholder Long Harbour,  said:  “This is a crucial first step towards positive change in the residential leasehold sector.

“It acknowledges the crucial role of institutional stakeholders in the stewardship of apartment buildings, ensuring they are maintained in a professional and efficient manner, preserving the long-term value of the buildings and ensuring resident safety.

“Following these commitments, we look forward to working with the Government and other stakeholders to finalise and adopt a comprehensive code of practice that establishes the highest standards for the management and maintenance of properties.”

The pledge signatories include:

Aquinna Homes

Association of Residential Managing Agents (ARMA)

Aviva Investors Global Services Limited

Barratt Developments

Bellway

Bewley Homes

Bovis Homes

Churchill Retirement

Consensus Business Group

Countryside Properties

Croudace Homes Group

Davidsons Developments

E & J Estates

Estates & Management Limited

Fairview New Homes

Galliford Try

Ground Rents Income Fund Plc

Hill

Home Builders Federation (HBF)

Homeground Management Ltd

Inland

Landmark Investments

Lioncourt Homes

Long Harbour Ltd

Mainstay Group Limited

McCarthy and Stone

Mears New Homes

Miller Homes

Millgate Developments (part of the Countryside Group)

Morris Homes

Nicholas King Homes

Octagon Developments

PegasusLife Group

Persimmon

PGIM Real Estate

Redrow Homes

Royal Institution of Chartered Surveyors (RICS)

Spitfire Bespoke Homes

St. Modwen Homes

Stewart Milne Group

Strata

Taylor Wimpey

Telford Homes

Wallace Partnership Group Limited

Wates Developments