Sky-high land charges on new-builds could be scrapped if plans get the go ahead.
The news comes as the North West is singled out as a hotspot for costly leasehold agreements and ground rents.
Rochdale MP Tony Lloyd has welcomed the “overdue” plans but urged residents to treat the news with “caution”. He said: “There is more to be done for families blighted by the ground rents scam and I think we must tread with caution because this isn’t just about new-builds, as we said in our manifesto – for the many – we are clear that existing leaseholders, especially in the North West and in Rochdale, need stronger rights too.”
Mr Lloyd, who was also appointed by Jeremy Corbyn as Shadow Housing Minister when the new Parliament kicked-off, added: “The government’s plans are overdue, they have known about and ignored the ground rents scandal for a long time, allowing hard-working families to be ripped off under these costly leasehold agreements.”
The leasehold system is typically used in flats but the trend for new-build houses that have been sold as leasehold has rocketed in recent years.
According to figures from the Department for Communities and Local Government, almost 21% of private housing in England are owned by leaseholders and 30% of those properties are houses rather than flats.
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