REDDITCH MP Rachel Maclean has slammed the ‘unethical behaviour’ of freeholders as she spoke in support of ending the leasehold scandal.
The Second Reading of the Government’s flagship Leasehold and Freehold Reform Bill, aimed at restoring true home ownership to millions, ending rip-off charges and introducing fairness to the leasehold market, took place on Monday.
The bill, which Mrs Maclean worked on when she was Housing Minister, will increase the standard lease extension term from 90 years in flats and 50 years in houses to 990 years for both houses and flats, with ground rent reduced to a peppercorn to zero financial value – upon payment of a premium.
This will ensure leaseholders can enjoy secure, ground rent-free ownership of their properties for years to come, without the hassle of repeated lease extensions.
It will improve leaseholders’ consumer rights by requiring transparency over service charges using a standardised comparable format so leaseholders can scrutinise and better challenge them if they are unreasonable.
The Government will also replace buildings insurance commissions for managing agents, landlords and freeholders with transparent administration fees, stopping leaseholders from being charged exorbitant commissions on top of their premiums.
And the Government intends to ban the creation of new leasehold houses, other than in exceptional circumstances.
Mrs Maclean said: “I was shocked by how leaseholders have been treated and how their lives have been blighted by this scandal which I know has blighted the lives of people in Redditch.
“I’m proud to have worked on this bill which will restore true home ownership to millions, end rip-off charges and introduce fairness to the leasehold market.
“We got here because of the greed and unethical behaviour of predatory freeholders who have treated leasehold properties as a cash cow and the leaseholders as a milking machine to produce an endless stream of income for no work at all.
“It is the ultimate definition of rent-seeking behaviour in its worst excesses.”
