Welsh Government sets up expert group to tackle poor leasehold practices

The Welsh Government has established an ‘expert group’ of representatives from resident groups, house builders, advice services and housing professionals to assess failings in the leasehold system.

The gathering – known as a task and finish group – will discuss how to address leasehold issues, producing materials to better explain how leasehold works, proposals for a voluntary code of practice for managing agents, and options for freehold home owners on private estates to challenge estate charges.

Rebecca Evans, housing and regeneration minister, said: “We have seen widespread criticism of poor practice in the use of leasehold in Wales. We will not support practices which have a negative impact on home owners, and I have already taken action to prevent the use of leasehold in new-build houses in Wales.

“In terms of where we go next, these are complex issues, and I have asked a wide range of interested parties to advise me so that I can take well thought through and appropriate steps to address the wide and varied concerns that have been raised with me.”

The group includes the Federation of Private Residents Associations, the Homebuilders Federation, the Chartered Institute of Housing and NAEA Propertymark.

It is being convened for up to two years and will prepare a report for the minister next summer.

Mark Hayward, chief executive of NAEA Propertymark, said: “The leasehold sector is a big focus for us, and we’re pleased the Welsh Government is looking into it, and taking action to help the country’s most vulnerable home owners.”

It follows the government in England, which has consulted on leasehold reform. Although no actual changes have as yet been introduced, Westminster looks set to stamp out the practice whereby new-build houses are sold leasehold, with buyers having to pay annual ground rent charges.

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