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<p>Unfair leasehold practices have no place in a modern housing market. The Government is taking forward a comprehensive programme to reform leasehold. This includes reducing ground rents on future leases to a zero and banning new leasehold houses.</p><p>The Government’s response to the technical consultation <em>Implementing reforms to the leasehold system in England</em>, published on 27 June 2019, set out that in future, purchasers of retirement homes must be offered the choice between paying ground rents on their new home or purchasing the property with zero ground rents (but with a higher sales price). In addition, ground rents cannot be used where event (exit) fees apply.</p><p>The law is clear that service charges must be reasonable and, where costs relate to work or services, the work or services must be of a reasonable standard. Leaseholders may make an application to the First-tier Tribunal to make a determination on the reasonableness of their service charges.</p><p>In October 2018 my Department established an independent Regulation of Property Agents working group, chaired by Lord Best, to raise standards across the property sector, which also considered how fees such as service charges should be presented to consumers, and whether they should be capped or banned. The working group reported in July 2019 and we are considering their recommendations.</p> |