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Government Vows To Stop Misuse Of Ground Rent

The government has vowed to tackle the abuse of ground rent by home builders, following an investigation into the charges.

The government has vowed to tackle the abuse of ground rent by home builders, following an investigation into the charges.

The misuse of the property charges, which were uncovered by UK newspaper, The Guardian, were found to have been committed against a number of properties bought under leasehold terms.


With ground rent being added on these homes, the investigation revealed that a number of housebuilding construction companies had taken the opportunity to increase the ground rent by as much as double each year, placing further strain on fledgling homeowners.


The actions, the government has claimed, have led to many homeowners struggling to pay for their homes or to sell them later on, leading to further difficulties for those looking to become owner occupiers.


With the government pledging to invest a total of £5bn into the construction of new homes in last week’s Autumn Statement, MPs have raised concerns that an estimated half of the homes due to be built will be sold on a leasehold basis – leaving purchasers open to the same challenges.


Peter Bottomley, Conservative MP for Worthing West, has put pressure on the government to ensure that buyers are not left with unsellable homes or are held accountable for rapidly growing ground rent.


Responding to the investigation, Sajid Javid, Communities Secretary, said:


‘We must make sure the kind of abuses he mentioned are stamped out and we will continue to do everything [we can]. We do work with a number of stakeholders and we can certainly see how we can do more.’

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